Why is Netflix suddenly so desperate?

polygon.com:

On Tuesday, Netflix told investors that it had lost almost 1 million subscribers in the second quarter of the year, and would be hastening plans for a cheaper, ad-supported subscription tier and a clampdown on account sharing in an attempt to shore up its customer and revenue numbers. It’s the latest in a fairly long line of negative news stories about the streaming giant, which have included layoffs and a reported downscaling of production, particularly in animation and in prestige film and TV.

Why, in the middle of a streaming boom that Netflix has led from the front, is the company suddenly in trouble? There are a few potential reasons — and Netflix’s position at the vanguard of streaming is one of them.

With 220.6 million subscribers, Netflix’s audience is enormous, and genuinely worldwide. It could be reaching the point where there are few people left who might subscribe to it and haven’t yet — at least in prosperous countries with good internet access. As the first company out of the gate, it stands to reason that Netflix would be the first service to find itself testing the limits of how many people actually want a premium video streaming subscription.

Add to this the tough economic conditions at the moment, with energy and fuel costs rising sharply and a recession looming, and it’s easy to understand why Netflix’s seemingly unstoppable growth has gone into reverse. Netflix might represent good value for money as entertainment, but it’s still an inessential monthly cost that’s easy to cut if you’re a family trying to balance its books.

That’s the simple answer, and more or less the explanation that Netflix has been presenting to its investors. Cutting costs, adding a cheaper offering along with a new revenue