Netflix loses 200,000 subscribers in less than 100 days

NETFLIX

Netflix is ​​one of the most popular content streaming services available worldwide. Lately, the company hasn’t been doing too well, officially reporting a massive loss of more than 200,000 subscribers worldwide in the first quarter.

You might be surprised to learn that this is the first time in over a decade that Netflix has lost so many subscribers. This information was shared by Netflix with its shareholders in its first quarter 2022 earnings report.

What’s even more frightening is the fact that Netflix forecast an even bigger loss of up to 2 million subscribers in the coming second quarter.

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Now there are multiple reasons behind canceling subscriptions. Let’s discuss them one by one.

1. Increased subscription prices

The cost of Netflix subscriptions is constantly increasing. To save some extra money each month, families and individuals have canceled their subscriptions.

After the recent price hike, Netflix lost about 700,000 subscribers in the US and Canada.

2. Leave Russia

As you may know, Netflix has left Russia. Since the content streaming service is no longer available in Russia, the number of Russian Netflix subscribers has automatically dropped to zero.

Netflix has officially reported that it has lost 600,000 subscribers after leaving Russia.

3. Sharing Illegal Password

Netflix stated that there are more than 222 million paying households, but there are another 100 million subscribers who share those accounts. Obviously, illegal password sharing is a big problem for Netflix.

In addition to the issues mentioned above, there are several minor factors, including the arrival of new competitors such as Apple TV and Disney+; lack of adoption of smart TV and data pricing in emerging markets; rising inflation; and much more.

To combat these problems, Netflix invests both time and resources. In the official statement, the company stated that,

“Our plan is to once again accelerate our viewing and revenue growth by continuing to improve all aspects of Netflix — especially the quality of our programming and recommendations,” Netflix said, adding that it is “doubling down” on content creation.

To bring more value to its subscribers, Netflix has also invested heavily in its gaming service.

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