Wednesday, July 24, 2024

Netflix lost subscribers due to competition and account sharing


Netflix announced that it lost 200,000 subscribers globally last quarter – compared to an expected increase of 2.5 million – and expects to lose another 2 million for the next quarter. Netflix attributed the losses to increased competition and account sharing with people outside their families. “The large number of households involved in the accounts, combined with competition, is creating headwinds for revenue growth. The company said that the Covid-19 big push for broadcasting has recently clouded the picture.

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Netflix currently has 221.6 million paying subscribers, but it is estimated that the service is shared in another 100 million homes: 30 million of them are in the United States and Canada. Moreover, the decision taken in early March to stop the service in Russia after the invasion of Ukraine resulted in the loss of 700,000 subscribers.

Instead, Netflix’s revenue in the first quarter increased about 10 percent to $7.87 billion: still less than analysts’ expectations. Quarterly profit was $1.6 billion, down from the same period last year ($1.71 billion).

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