Netflix Sees First Major Drop In Subscriptions In The First Quarter Since Its Existence
The streaming giant, which has more than 221.6 million subscriptions worldwide, deplores a decrease of 200,000 subscribers due, in particular, to the suspension of its service in Russia. His title fell by 25% on Wall Street.

Netflix losses 2021 Why Netflix is losing subscribers Netflix losing subscribers 2022 Netflix losing customers 2022 Netflix losing shows
Netflix losing content Netflix losing subscribers woke Netflix profit
Netflix subscribers by country
Netflix login How many subscribers does Netflix have Netflix subscription
Netflix losing subscribers Reddit
Netflix losing streaming wars
ECONOMY MEDIA
By YEET MAGAZINE - With Reuters Updated 0339 GMT (1239 HKT) May 16, 2022

The Covid-19 pandemic and the many lockdowns decided around the world had inflated Netflix subscriptions, with 36 million additional customers in 2020. Today, the war in Ukraine, in particular, is causing a decline for the streaming giant, which expects greater losses in the coming months.
The American company lost 200,000 subscribers worldwide in the first quarter of 2022, compared to the end of 2021. Netflix had planned to gain 2.5 million additional subscribers - and analysts expected even more - but, on the contrary, noticed a decline bringing its total to 221.64 million subscriptions.
Netflix explained that this decrease was mainly related to the difficulty of attracting new subscribers to all regions of the world, but also to the war in Ukraine, which led, as a sanction to Moscow, to the suspension of its service in Russia.
Read also Netflix, PayPal, Epic Games... Technology companies suspend their activities in Russia
This suspension and "the gradual decrease in the number of Russian paying subscribers resulted in a net loss of 700,000 subscriptions. Without this impact, [the service would have] had 500,000 additional subscriptions" compared to the last quarter, the Californian company said in a statement.
The main consequence of this decline in subscribers: Netflix's share plunged by more than 30% on the New York Stock Exchange on Wednesday, April 20. The valuation of the streaming group thus founded more than $40 billion ($36.9 billion) on Wall Street, according to the financial data management company FactSet.
Diversify sources of income
In total, Netflix achieved $7.9 billion in turnover from January to March, nearly 10% more than a year ago, thanks in particular to the increase in the number of subscribers over one year (+6.7%) and the increase in its prices. The company generated 1.6 billion in net profits, slightly less than 1.7 billion in the first quarter of 2021.
"The loss of Netflix subscribers is very revealing for a company that has not stopped gaining subscribers for an entire decade," said Ross Benes, an analyst at eMarketer."With subscriptions down, and weak growth prospects, Netflix will have to rely more on secondary branches, such as video games or derivatives to try to increase its revenues," he added.
Read also Article reserved for our subscribers How Netflix is shaking global audiovisual
After years of high-speed user conquest, and awards in festivals, the company has been jostled since the end of 2019 by major rivals, such as Disney + and Apple TV +. "We know that [the loss of subscribers] is disappointing for our investors, but we are ready to react.(...) It's time to shine and come back in their little papers," said Reed Hastings, co-founder of the company, which is planning a loss of two million additional subscribers from April to June.
Netflix still intends to invest in content production so as not to give up too much ground to this new competition, even though its CFO announced that spending growth will have to slow down.
The company is also looking to diversify its sources of income as shown by the acquisition in September of its first video game studio - a very lucrative sector - Night School Studio, a Californian start-up that created the supernatural thriller Oxenfree. In November, she launched several mobile games for her subscribers, some inspired by the world of the science fiction and horror series Stranger Things.
Want to know more about cinema at home?
The problem of account sharing
But the fact that many households share their account and increased competition "create obstacles to [its] growth. The flight of streaming thanks to Covid had masked reality until recently," Netflix also stressed. The Los Gatos, California company estimates that about 100 million households worldwide watch its service for free using a friend's or other family member's account, including 30 million in the United States and Canada.
Sharing passwords between households "affects [Netflix's] ability to invest in quality series and films for [its] members," said Chengyi Long, the company's Director of Product Innovation. Netflix has thus undertaken to tighten the screw on the side of ID sharing.
"We just need to make sure they pay at least in part for the service they love," said Reed Hastings. In early March, the group launched tests in South American countries to charge its customers for the addition of additional profiles to their account. The platform plans to install this system in its main markets within a year. "We're not trying to prevent people from sharing, but we're going to ask you to pay a little more to do so," summarized Greg Peters, Director of Operations.
In addition, the company wants to continue to take advantage of another aspect of streaming, that of "commitment", i.e. the time spent by users watching movies and series. On this side, it's going "very well," said co-general manager Ted Sarandos, referring to a successful film and series: "We need to have an Adam Project and a Bridgerton every month so that the service is up to expectations all the time. »
A small revolution, Netflix now plans to offer cheaper subscriptions, with advertising, within one or two years. "It is clear that it works for Hulu," notes Reed Hastings. "If you want the ad-free option, it will always be possible. If you prefer to pay less and tolerate ads, there will be an offer for you too. »
Read also Article reserved for our subscribers The series follow one another at a frantic pace in 2022
On Tuesday, Netflix said it relied on these measures, and improvements to its service in general, to "accelerate" its revenue growth."People love movies, TV shows and games; high-speed Internet and connected TVs continue to grow around the world with more and more connected devices; and while hundreds of millions of households pay for Netflix, more than half of broadband-connected households do not yet do so, which represents enormous potential for future growth," notes the streaming giant in a positive momentum.
Read more posts on Netflix
meghan and harry netflix deal cancelled 2022
netflix unhappy with harry and meghan
"netflix series" movie or series or "netflix movie series" or "netflix documentary"1997 netflix
álvaro morte movies on netflix
language learning with netflix
arcane netflix how many episodes
canceled shows on netflix 2022
cancelled tv shows 2022 netflix
celebrity plastic surgeons netflix
did netflix drop harry and meghan
did netflix drop meghan and harry?
dvd rental services like netflix
harry and meghan netflix deal cancelled
harry and meghan netflix deal worth
house of gucci netflix release date
how does netflix decide what shows to renew
how much did anna delvey get paid by netflix
how much did netflix pay anna delvey
how much did netflix pay for inventing anna
how much did netflix pay jessica pressler
how old is vi in arcane netflix
how to watch arcane without netflix
is netflix a publicly traded company
is the movie house of gucci on netflix
league of legends netflix series
list of cancelled netflix shows 2022
list of netflix cancelled shows
list of netflix cancelled shows 2022
meghan and harry netflix deal cancelled
meghan markle netflix deal cancelled
netflix arcane animation studio
netflix arcane vinetflix arcane viktor
netflix cancelled shows for 2022
netflix chartnetflix company history
netflix loses subscribers reddit
netflix loses subscribers woke
netflix losing subscribers 2021
netflix losing subscribers 2022
netflix losing subscribers reddit
netflix losing subscribers woke
netflix shows cancelled too soon
netflix subscriptions worldwide
netflix total subscribers 2022
prodigal son picked up by netflix
show whindersson nunes netflix
the grinch not on netflix anymore
úrsula corberó movies on netflix
what episode does gon transform netflix
what episode does gon transform on netflix
what happened to ncis on netflix
what shows did netflix cancel for 2022
what shows were cancelled on netflix
when did netflix become a streaming service
when did netflix become popular
when did netflix start streaming
when did netflix start streaming movies
when does arcane come out on netflix
when does arcane get good netflix
when is arcane coming out on netflix
when will arcane release on netflix
where can i watch arcane besides netflix
where can i watch arcane without netflix
where to watch arcane besides netflix
whindersson nunes netflix 2022
who created netflixwho made arcane netflix
why can't i find arcane on netflix
why can't i see arcane on netflix
why can't i watch arcane on netflix
why is netflix a good investment
why is netflix losing subscribers reddit
why should i invest in netflix
why should you invest in netflix
why you should invest in netflix
will netflix pick up prodigal son