> As for "Netflix can grow by getting more users by offering attractive services and features", that's circular reasoning. They need growth to help pay for new

> As for "Netflix can grow by getting more users by offering attractive services and features", that's circular reasoning. They need growth to help pay for new attractive services and features. Growing is exactly what investors money is for, besides their monthly revenue that allows them to grow a bit every period of time X. > The problem is that their none of their existing user base signed a 30-year irrevocable contract to always pay $11.99 for the next 360 months. Consumers have free will and their preferences change which is why Blockbuster couldn't count on their old customers to keep walking into their stores to rent DVDs. That's a problem for when netflix loses users at a rate that will damage profit rates unacceptably, not before. > E.g.: https://www.google.com/search?q=netflix+lost+subscribers https://www.google.com/search?q=netflix+lost+subscribers They lost market share because Disney+ has exclusive content Netflix doesn't and some users preferred to only maintain one service, there's nothing Netflix can do about it besides trying to make their product _more_ attractive, not less. You could argue that maybe they could regain market share by making the product cheaper, but I doubt they will ever achieve a cheaper enough price where people would be willing to pay for both Netflix and Disney+/Other streaming website with more attractive content for them or switch back to netflix because it's become trash without an interesting catalogue and full of ads for being so cheap.