Netflix loses 200,000 subscribers in Q1 of 2022
In a letter to its fellow shareholders, Netflix had made it known that the company had reported a loss of 200,000 global subscribers compared to the last quarter. This is a far cry from its prediction previously last year, in which they had believed the quarter would seem them add 2 to 4.5 million subscribers. This leaves the company in a dire situation as it is forecasting even bigger losses to come with an estimated loss of 2 million subscribers next quarter. The report had sent shockwaves to the financial markets sending Netflix’s stock plunging, down by over 23%.
Netflix had acknowledged that its revenue growth has slowed down and that the rapid increase in popularity during COVID had clouded its perception of growth. It is no secret that Netflix had recently increased the price of its streaming service in major countries. As well that Netflix had also attempted to nail down on customers who share passwords, on which they estimated that over 100 million households share Netflix. These in turn had led to a slow down in sign-ups. It was also made known that in March, Netflix had suspended its services in Russia at the start of its conflict with Ukraine.
This resulted in a reported loss of around 700,000 subscribers which played a big role in the decrease in subscribers this quarter. But with growing competition from Amazon, Hulu, HBO, and others, Netflix will have to come up with a new plan in maintaining its dominance in the streaming market.
The company hopes to reinvigorate its viewing and revenue growth by improving all aspects of Netflix. The company had recently released its “double thumbs up” feature in the hopes to get a better idea of what users truly love instead of simply like. Netflix is also exploring a lower-cost subscription plan that would feature ads, which the company had been against ever since its start. It is also working on a method of slowly monetizing sharing accounts in terms of passwords.
The company had also indicated that it would be doubling down on the production side of things.