Netflix on Tuesday reported a major loss of subscribers for the first time in more than 10 years. The broadcast giant lost 200,000 subscribers worldwide in the first quarter, and predicted even greater problems to come.
According to Netflix estimates, it could lose up to 2 million subscribers in the next second quarter – due to rising subscription taxes and the fact that Netflix is working on a password-sharing feature.
“Our revenue growth has slowed sharply,” Netflix wrote in a letter to shareholders on Tuesday. “Broadcasting is winning the line, as we predicted, and Netflix headlines are very popular around the world.
In January, Netflix reported its first increase in monthly subscriptions in two years, but recent revenue reports indicate that the company is facing challenges in retaining existing customers and attracting new ones, even though it is still the world’s largest broadcaster with 222 percent. millions of subscribers.
Netflix said it lost 600,000 customers in the US and Canada this quarter. Details of Indian and foreign customers are not disclosed in the report.
But the company highlighted that subscribers have stopped their subscriptions due to price changes, but the company’s decline in growth may be due to account sharing.
However, rising prices may not be the only problem for Netflix’s. In March, Netflix introduced two new paid sharing features in at least three markets as part of its efforts to stop password sharing between different families.
Netflix’s estimates that there are more than 100 million households using a single home account – something Netflix sees as a barrier to its growth after so many years.
“Sharing can help us grow by making more people use and enjoy Netflix. And we were always trying to make sharing within the member’s family easier, with features like profiles and more streams.
Although these were very popular, they caused confusion about when and how Netflix could be shared with other households, ”said the broadcaster giant.
Netflix’s CEO, Reed Hastings, however, believes that sharing revenue-generating accounts will boost ARM growth and revenue. “… income and visibility will be more important indicators of our success than membership growth.”
Loss of registrants could also be due to suspension in Russia due to the ongoing Ukraine crisis, which, according to the company, has resulted in the loss of 700,000 subscribers.
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