In a span of three days, Netflix‘s precarious position went from bad to worse. After bungling a live-streamed Love Is Blind reunion on April 16, the streamer reported so-so earnings during its quarterly call with investors.
Netflix’s Q1 2023 numbers included $8.16 billion in quarterly revenue, $2.88 of earnings per share, and 1.75 million new subscribers. According to Bloomberg, the earnings-per-share figure is the only one that exceeded expectations. Netflix was projected to add 2.3 million subscribers during the first quarter of the year.
The Q1 2023 earnings report was the first one Netflix delivered after its founding CEO, Reed Hastings, stepped down from his position in January. Hastings’ role has been filled by Co-CEOs Ted Sarandos and Greg Peters, who must weather a series of challenges as Netflix looks to stay afloat in the competitive streaming market.
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One of those challenges emerged a few days before Netflix’s earnings call. The subscription service had heavily promoted its live Love Is Blind reunion, in which the contestants from the dating show’s fourth season would relive their dramatic storylines.
But instead of getting the tea they sought, Love Is Blind fans found themselves unable to access the stream. Netflix, which was attempting its second-ever live broadcast, was forced to delay the release of the reunion. Disgruntled viewers took to Twitter, where everyone from Stephen A. Smith to rival platforms took shots at Netflix.
During the Q1 2023 earnings call, Peters addressed the flubbed live event. He said that Netflix attempted to optimize its infrastructure after airing its first live event — a Chris Rock comedy special — but that effort introduced a bug into the system. When millions of viewers attempted to access the Love Is Blind reunion, the bug revealed itself.
“We’re really sorry to have disappointed so many people,” Peters said. “We didn’t meet the standard that we expect from ourselves to serve our members.”
As investors reacted to the Love Is Blind snafu, Netflix stock dipped in the first hours of trading on Monday morning. It partially rebounded from that dip, but those gains proved short-lived. After Netflix reported its Q1 2023 earnings, its share price fell more than 10% before recovering again.
Netflix’s 2023 has been a roller coaster, and the ride won’t end anytime soon. During the second quarter, the streamer plans to bring its password-sharing crackdown to the United States. That development could boost Netflix’s subscriber numbers, but the company expects to endure many cancellations as well.
In an uncertain moment, one thing is clear: Even if Netflix’s big plans go south, the streamer won’t be returning to its original business model. On the day of its earnings call, it announced that it would discontinue its DVD delivery service after a 25-year run.
