Netflix loses More than 200,000 subscribers in 100 days

Netflix has suffered heavy losses in the last few quarters. According to the report, Netflix users have decreased in the first quarter of this year. Netflix has lost more than 200,000 subscribers in about 100 days. This is the first time in the history of Netflix that such a large number of subscribers have been reduced.

According to the quarter ended March 31, 2022, the number of Netflix subscribers has come down to 221.6 million Which is slightly less than the first quarter of last year.

Russia and Ukraine War became the reason for this
Netflix claims that the reason for the decrease in subscribers is the war between Russia and Ukraine. Netflix has stopped its service in Russia. Along with this, Netflix service in Ukraine is also affected due to the war. In such a situation, the company claims that the reason for the war has been a decline in the number of its subscribers.

The company’s stock fell by 25%
Silicon Valley tech firm Netflix posted a net worth of $1.6 billion in the first quarter of this year. Whereas last year’s first quarter total earnings were $ 1.7 billion. The company’s stock fell by 25% after Netflix lost subscribers.

Subscribers decreased due to account sharing
The company says that due to Covid, people were working from home in large numbers, due to which the growth rate of the company was very fast in the year 2020. Netflix believes that subscribers share their accounts with people not living in their homes, which is causing losses to the company. To address the account sharing issue, Netflix began testing a new password sharing monetization feature in March as another means of increasing revenue as subscriber numbers faltered. The feature, which has been unveiled in Chile, Costa Rica and Peru, charges main account holders a small fee to add two users outside their household to their accounts, although it’s not immediately clear what the revenue impact of the test has been so far. Netflix has yet to roll out the feature globally, although it seems a widespread crackdown on passwords could be imminent given its impact on Netflix’s growth.

Using Netflix for Free
The company said that around 222 million households are using Netflix, while the number of Netflix accounts is 100 million. are using netflix on cheap internet data and smart tv. But the television streaming service is not paying. Netflix started testing ways to earn money from people who shared accounts last year.

But with the weak performance in Q1, Netflix said its slowdown in growth was due to a variety of factors, including account sharing, continued disruption caused by the pandemic and, again, increased competition from rival streamers. In its shareholder letter on Tuesday, Netflix said that of its roughly 222 million paid subscriptions, more than 100 million were being shared with users outside of paying households, with 30 million shared accounts happening in the U.S./Canada region alone.

Netflix loses More than 200,000 subscribers in 100 days

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