Streaming giant Netflix has not only lost subscribers since the beginning of the year, but after publishing its first quarters earlier this week, it’s clear that it's losing profits as well.
The report had a negative effect on the company’s stock as it went down as much as 25% after its publication.
During the first three months of 2022 Netflix lost 200 000 subscribers globally. The current subscriber number of 221,6 million is still good enough to make it the biggest streaming platform in the world, but it was expected to add 2.5 million subscribers during the first quarter of the year.
CNN reports that it cannot be overstated just how bad of a report this is for the king of streaming. The company’s stock has fallen more than 40% year to date, and coming into the earnings there was a lot of concern from investors regarding its growth. The company hasn’t lost subscribers in more than a decade.
While Netflix believes that 2020’s growth during the pandemic gave unrealistic growth forecasts for the future, the loss of subscribers could also be blamed on traditional media companies that have also now branched out to the streaming market.
Password sharing has also become a significant role-player.
“In addition to our 222 million paying households, we estimate that Netflix is shared with over 100 million additional households, including 30 million in the United States/Canada region”, the company said in a statement accompanying the report.
When Netflix pulled out of Russia recently, it lost 700 000 subscribers.
Image credit: Giant Freakin Robot