Part 8/11:
Neon emphasizes the danger of broadcasting to the market that one account equals one viewer, questioning how Netflix can truly know how many people are in the household, let alone how many are actively watching. The possibility looms that these inflated metrics could exaggerate actual audiences, leading advertisers to overpay for underwhelming engagement.
Market and Stock Implications
Netflix’s stock has been somewhat volatile recently, with declines coinciding with the announcement of the new metric. Neon points out that part of the stock’s fall could be attributed to broader economic concerns, but raising the prospect of inflated viewership metrics might also shake investor confidence.