Netflix has hit the 208-million subscriber mark and plans to spend US$17 billion on new content this year. And yet, its shares fell 11 per cent in after-hours trading to US$489.28, reducing the company’s market capitalization by US$25 billion.
Why is that the case? After all, ever since the Covid-19 pandemic began last year, Netflix saw 25 million more paid subscribers signing up as millions of people were forced to stay at home. This probably contributed people’s appetite for…