Netflix is experiencing its biggest fall in nine months, raising concerns among investors. The main concern is Netflix's decision not to disclose its monthly subscriber gains or losses until the first quarter of 2025, adding opacity to the company's fundamentals. This decision was not well received by Wall Street, especially as Netflix is a company whose value is largely calculated on a per-subscriber basis.

In addition, Netflix reported negative net subscriber growth compared to the first quarter and provided guidance for the second quarter that was below consensus estimates, fuelling fears of a slowdown in revenue growth. Netflix's shares reacted strongly negatively, falling more than 8%, potentially marking its biggest fall since April 2022.

The company has also implemented a crackdown on password sharing, which appears to have encouraged users to create their own accounts. In response to potential churn due to rising prices, Netflix has introduced a cheaper ad-supported subscription with very few ads at the moment, which could appeal to consumers despite a fall in average revenue per subscriber.

Netflix is also moving towards the inclusion of sports content, having signed a deal with the WWE to broadcast live sporting events each week, although the company has indicated that sports-related costs will be covered by its overall content budget of $17 billion. Diversification into sports and potentially news is seen as a key strategy for Netflix's future.

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