Netflix Loses 200,000 Subscribers In Less Than 100 Days

by Dikhyaa Mohanty
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Netflix shares lost a quarter of their value Tuesday after the company revealed its ranks of subscribers shrank in the first quarter of this year. It was the first time in a decade that the leading streaming television service had lost subscribers. The company blamed the quarter-over-quarter erosion on the suspension of its service in Russia due to Moscow’s invasion of Ukraine.

According to the reports, Netflix ended the first quarter of this year with 221.6 million subscribers, slightly less than the final quarter of last year. The Silicon Valley tech firm reported a net income of $1.6 billion in the recently ended quarter, compared to $1.7 billion in the same period a year earlier. Netflix shares were down some 25 percent to $262 in after-market trades that followed the release of the earnings figures.

In an earning letter, Netflix said “We’re not growing revenue as fast as we’d like. Covid clouded the picture by significantly increasing our growth in 2020, leading us to believe that most of our slowing growth in 2021 was due to the Covid pull forward.”

Netflix believes that factors hampering its growth include the time it is taking for homes to get access to affordable broadband internet service and smart televisions, along with subscribers sharing their accounts with people not living in their homes. The streaming giant estimated that while it has nearly 222 million households paying for its service, accounts are shared with more than 100 million other households not paying for the television streaming service.

“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. Our plan is to reaccelerate our viewing and revenue growth by continuing to improve all aspects of Netflix in particular the quality of our programming and recommendations,” said Netflix.

Another factor for Netflix is intense competition from titans such as Apple and Disney.

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