Bad weather in Los Gatos! Netflix announced a loss of 200,000 subscribers in the first quarter of 2022 and plans to lose another 2 million in the current second quarter. These figures were announced by Streamer this Tuesday when announcing the results for the first quarter of 2022. variety.
In January, the platform announced that it had 221.84 million subscribers by the end of 2021. For the next three months – or until March 31st – and even though the film was released with Ryan Reynolds, Adam and Bridgeton season. 2, Netflix says the total number of subscribers has dropped to 221.64 million.
This is the first time the giant has lost subscribers in the last 10 years. However, Netflix said that without taking into account the losses in Russia, where Streamer ceased service during the invasion of Ukraine, it would gain 500,000 subscribers in the first quarter.
Despite the brazen growth, largely due to the COVID-19 pandemic, Netflix has predicted a more reasonable increase in subscribers for this 1.Eh 2022 quarter. But this poor performance is like a thunderstorm. To justify itself, Netflix quickly cited both increased competition and password sharing (which Streamer is trying to monetize) as factors in this loss of subscribers.
Direct result: On the stock exchange, Netflix shares closed at $ 348.42 on Tuesday. In after-hours trading, shares fell more than 22% after news broke of a loss of subscribers and a forecast of a bigger loss in the second quarter.
“We need to be competitive and improve the core service of TV shows and movies, and now the games that people really love,” said Ted Sarandos, CEO and Chief Content Officer.
Meanwhile, Assistant Director Reed Hastings said Netflix is currently considering launching a low-priced, ad-supported subscription offer, which the streaming magnate has long opposed.
Hastings also outlined how it would help Netflix fight password sharing to attract subscribers it already technically already has as users: “They love service, we just have to pay.“
Netflix estimates that more than 100 million households do not pay to sign up, but use the service thanks to shared passwords. Streamer says he’s focused “The best way to monetize sharing“Call him”Excellent opportunity because these families are already watching Netflix and enjoying our service“.
This option has been explored for some time and the testing phase has already started in three South American countries: Chile, Peru and Costa Rica. Subscribers can add up to two accounts outside their family, about $ 2-3 / month, in addition to their regular monthly fee.
Wall Street firm Cowen & Co. estimates that if Netflix launches the program globally, it could generate $ 1.6 billion in global revenue annually.
Source: allocine
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
