Netflix Inc.’s third-quarter earnings prediction recently did not meet Wall Street’s expectations. This unimpressive forecast indicates that attempts to stop password sharing and the addition of a new advertising tier have not yet led to the anticipated revenue rise. Investors responded negatively; during Wednesday’s extended trading, Netflix shares dropped as much as 10%.

Extended trading saw a huge decline in the stock, which had increased by 62% so far this year, and it now trades at $430.41. This response demonstrates the market’s reservations regarding the efficacy of Netflix’s most recent measures to stimulate growth.

The fact that Netflix forbids password sharing is one element that might have contributed to its poor performance. The streaming service has taken measures to restrict the sharing of credentials by many users to boost revenue and guarantee fair use. But thus far, this tactic hasn’t brought about the outcomes we were hoping for.

The addition of a new advertising layer was another attempt to boost profits. By providing an ad-supported option, Netflix wanted to increase subscription numbers and make more money. It appears, though, that this strategy has not yet resulted in the anticipated rise in sales. The market’s response to the underwhelming projection shows skepticism regarding the efficacy of this advertising technique.

Beyond password sharing and ad exposure, Netflix is also battling the effects of the continuing Hollywood strike. Industry-led union-led strikes are anticipated to reduce manufacturing costs by $1.5 billion this year. Long-term benefits for Netflix may appear to outweigh any short-term effects on revenue and content creation.

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