Netflix loses nearly a million subscribers, but remains optimistic

The company has taken many steps in recent days, including announcing a spending cap of $17 billion, which is still huge, but not the bottomless purse it's been rocking for a decade . By the way, that $17 billion is what they spent on all of their content in 2021. So while that's a limitation, it's unlikely we'll see much less new content. movies and shows from them.

Netflix head honcho Reed Hastings thanks 'Stranger Things' for helping stem an anticipated drop in subscribers and he's not wrong. "Stranger Things" is Netflix's Mickey Mouse right now, but they've got a big problem...because they can't depend on those naughty Hawkins kids forever. It will be at least two years before the release of the fifth and final season and after that we may have spin-offs, but the Duffer Brothers have made the story of Eleven, Mike, Will, Lucas, Dustin very clear, Max, Steve, Jonathan, Robin, Hopper and Joyce end next season.

The simple solution is that they need to keep creating original series to keep people engaged, but capturing that lightning bolt in a bottle is easier said than done. To achieve this, they will need to employ people who are willing to take risks and not decide what to green light based on algorithms and imitations of their greatest hits.

So Netflix may have been saved by "Stranger Things" this quarter, but they're still on a knife edge as a business with all the other greedy streamers nipping at their heels. For them, the only way out is to invest in a good product that people want to see. It sounds simple, but you'd be surprised how elusive this concept is for many executives.