On Sunday (March 27), local time, the 94th Academy Awards ceremony came to an end, and "CoDA" won the best picture award and beat Netflix's Western "The Power of The Dog".
Netflix has had a hard time this year
Since the film's distributor is Apple TV+, this means that Apple made history as the first streaming operator to win the Academy Award for Best Picture.
Let's put the Oscars aside for the time being.
For Netflix, this is just another bad time in the tough 2022.
So far, Netflix shares have fallen by 38% in 2022. It was a year of Netflix failure.
Spencer Neumann, Netflix's chief financial officer, said frankly at an investor conference earlier this month that the company is somehow "looking" for a post-pandemic norm as he tries to reduce investors' focus on membership growth.
Competitive factors are important
Netflix faces not only deep-pocketed streaming rivals from Apple, Amazon and Walt Disney, but also YouTube from Alphabet and TikTok from ByteDance.
Netflix also sees video games as a competitor to some extent, as it is venturing into this segment.
Netflix's real challenge may not be in the U.S. and Canada, but in other parts of the world.
Neumann said Netflix has lower penetration in Asia and Europe. If Netflix can reach its 60 percent penetration rate in the U.S. worldwide, he said, the calculation would be effective given that there are about 1 billion connected TVs worldwide.
"So that's pretty quickly putting us in a business with over 500 million members." If we can do that, we're going to keep adding value and pushing for reasonable monthly subscription prices, which is going to be a pretty big and healthy revenue model, and we can push the profit pool to a fairly large extent," he said.
But for now, this is an argument that investors are reluctant to accept.