Netflix Analyst Cuts Subscriber Forecast on 'Flash in the Pan' 'Cuties' Controversy

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Wells Fargo analyst Steven Cahall cut his third-quarter Netflix subscriber growth forecast by 50 percent to 2.5 million, citing the 'Cuties' controversy's hit in the U.S. and Canada, but spoke of 'a flash in the pan.' More details:

Cuties

, Wells Fargo analyst Steven Cahall wrote in a Tuesday report, cutting his subscriber forecast for the period in half to 2.5 million, with the full impact modelled to come in the U.S. and Canada. He now forecasts Netflix will lose 2 million U.S. and Canadian subscribers in the quarter ending on Wednesday, compared with his previous estimate for a 500,000 gain, arguing that"this region bears the brunt of theCahall in his report detailed the math behind his assumptions."If we are to believe reports, then Netflix faced a short-lived but potentially stark churn uptick in September due to controversy around," he said.

Cahall highlighted that"typical Netflix monthly churn is impressively low at 3.5-4 percent." But he said that reports of YipitData figures, which suggested monthly subscriber churn"might have reached levels that were some eight times August’s churn rate," have"meaningfully" contributed to Netflix's recent stock slide.

The acclaimed French film directed by Maïmouna Doucouré is a coming-of-age story about an 11-year-old girl from a traditional Muslim Senegalese family who tries to fit in by joining a group of young dancers who carry out sexualized routines and post them online. The film became caught up in pre-election rhetoric in the U.S. Netflix found itself having to apologize after one of its promotional posters forwas widely criticized for being sexually exploitative.

 

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This dirty movie 😬😬

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