Netflix is getting stingier about its viewing data, and Wall Street isn’t happy

A decline in advertiser and investor confidence due to the reduction of viewership data disclosure has led to a downward adjustment in performance outlook (concerns over annual subscriber growth rate slowdown and decreased content investment efficiency). In particular, the reduction of real-time viewership data may lead to a decrease in the transparency of the advertising revenue model, which is likely to result in advertiser attrition in the long term. Additionally, margin pressure is expected due to decreased content investment efficiency.

If the current support level ($72.50) is breached, there is a high possibility of further decline. If the resistance level ($76.20) is not breached, concerns about short-term weakness will persist. A buy signal is considered at the point of resistance breakout.

1) Deterioration of investor sentiment due to downward revision of earnings outlook following quarterly earnings announcement and announcement of reduced frequency of viewership data disclosure. 2) Increased likelihood of deteriorating relationships with advertisers and content creators. 3) Concerns over market share decline due to strengthened content competitiveness of competitors (Disney+, Max, etc.). 4) Potential structural weakening of the advertising revenue model if the reduction in real-time viewership data leads to advertiser attrition.