For the first time in over a decade, Netflix has lost subscribers. There are 200,000 fewer users of the streaming platform globally in the first quarter of 2022, compared to the last three months of 2021. But the regression scenario doesn’t end there, as the streaming giant expects to a loss of subscriber revenue that could reach two. million in the second quarter.
For Netflix, one of the main culprits for the drop in subscriber growth is nothing less than the sharing of passwords and accounts. Indeed, a month ago, Netflix unveiled, once again, the plans you have to end this situation and ensure that a portion of those who used someone else’s account make their own subscription.
However, the factors contributing to the platform’s unprecedented downfall don’t end there. The war in Ukraine, which leads Netflix to suspend its services in Russia, resulted in a loss of approximately 700,000 subscribers. Moreover, the increasing number of competitors in the market also contributed to the reduction in the number of Netflix, which competes with platforms such as Disney+, HBO Max and Prime Video.
Predictably, Netflix’s stock market value didn’t appreciate the news and plummeted over 22% within hours of the streamer’s reveal. Even so, in the first quarter of the year, profit was $1.6 billion.