Are You Still Watching?
All eyes may not be on Netflix. But they are on Netflix’s earnings.
Roll credits for Netflix then?
Not quite yet. The world’s biggest streaming service has more than 221 million subscribers. But earlier this year, it reported its first quarterly loss in over a decade. Experts say inflation and competition from services like Disney+ are to blame for Netflix’s very own “How to Lose Subscribers in 10 Days.” But today, the company’s expected to report another loss — this time, 2 million subscribers in a single quarter.
That sounds like...a lot?
It is. Compare that to last quarter’s loss which was 200,000. But there could be a second act: last week, Netflix announced it’s partnering up with Microsoft to launch a cheaper (but not free) ad-supported subscription plan later this year. The company’s also cracking down on password sharing. It's a move the service hopes will bring back subscribers. Meanwhile, Netflix is also reportedly working to build a hit as big as “Star Wars” or “Harry Potter.” Do or do not, Netflix. There is no try.
Netflix is the leader of the streaming services world. But today could play out like a cautious tale for other streaming platforms — and investors who are looking for the next big thing.
PS: Want to know more about earnings season? We Skimm'd what it means for you.
Where temps aren't cooling down…
The UK. Yesterday, the UK issued its first-ever red warning for extreme heat. Large parts of Britain — from England to Wales — are reaching record high temperatures. In some places, they’re even rivaling temps seen in the parts of the Sahara. The alert means that this level of extreme heat can lead to heatstroke or even death. The agencies are also explicitly pointing the finger at climate change, saying it will only get worse. The news comes as two people have died from heat-fueled wildfires in Spain and as countries like France and Greece try to contain the blazes.
What you maybe don’t want to taste…
The rainbow. Last week, a California man sued the maker of Skittles, accusing the company of making a product that is “unfit for human consumption.” While these are the kinds of harsh words normally reserved for Subway tuna, in this case, the debate is over titanium dioxide. The EU is banning the food additive next month over concerns it could be tied to cancer. And a few years ago, Skittles owner Mars said it would phase out the additive. But the lawsuit accuses the company of failing to warn consumers — which could amount to fraud. Mars says its use of the additive “complies with FDA regulations” which is about as comforting as that sounds.
…Oh and freeze-dried blueberries: There’s a nationwide recall on two batches of Natierra Organic Freeze-Dried Blueberries. The reason: concerns over too much lead. Toss the bags with best by dates of December 2024 and January 2025.
What’s issuing some refunds…
Uber. Yesterday, the ride-sharing company reached a settlement with the Justice Department to resolve a lawsuit alleging that Uber violated the Americans with Disabilities Act. The allegations include charging passengers with disabilities wait time fees — even though they needed more time to get into the cars. Now, Uber’s agreed to cough up more than $2 million. Some of that money will go to the more than 65,000 Uber users who were charged wait time fees. Uber has also agreed to waive wait time fees for passengers with disabilities. Officials say the settlement will send a “strong message” to other companies.
While the MLB will be singing Smash Mouth today...
The NCAA has an all-star of its own.
Sign up for the Daily Skimm email newsletter. Delivered to your inbox every morning and prepares you for your day in minutes.