Report Released, according to its quarterly earnings, Netflix’s customer base fell by 200,000 subscribers during the January-March period. Netflix admitted its problems are deep-rooted by projecting a loss of another 2 million subscribers during the April-June period. It’s the 1st time that Netflix’s subscribers have lost since the streaming service became available throughout most of the world outside of China six years ago. This year’s fall originated in part from Netflix’s decision to withdraw from Russia to protest the war against Ukraine, resulting in a loss of 700,000 subscribers.
The Los Gatos, California, company estimated that about 100 million families worldwide are seeking its service for free by using the account of a friend or another family member, including 30 million in the U.S. and Canada. To stop the practice and prod more people to pay for their accounts, Netflix predicted it might expand a test introduced last month in Chile, Peru, and Costa Rica that allows subscribers to add up to two people living outside their households to their accounts for an additional fee.
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With the pandemic easing, people have been finding other things to do, and other video streaming services are working hard to lure new viewers with their award-winning programming. Apple, for instance, held the exclusive streaming rights to “CODA,” which eclipsed Netflix’s “Power of The Dog,” among other movies, to win Best Picture at last month’s Academy Awards.
Account sharing as a percentage of our paying membership hasn’t changed much over the years, but, coupled with the first factor, means it’s harder to grow membership in many markets — an issue that was obscured by our COVID growth,” Netflix said Tuesday in a letter to its shareholders.
Netflix ended March with 221.6 million worldwide subscribers. The subscriber downturn clipped Netflix’s finances in the first quarter when the company’s profit fell 6% from last year to $1.6 billion, or $3.53 per share. Revenue climbed 10% from last year to nearly $7.9 billion.
If the stock drop extends into Wednesday’s regular trading session, Netflix shares will have lost more than half of their value this year — wiping out about $150 billion in shareholder wealth in less than four months.
Netflix ended March with 221.6 million worldwide subscribers. Netflix also is trying to give people another reason to subscribe by adding video games at no extra charge — a feature that began to roll out last year.
