Netflix is reported to have lost 200,000 subscribers in the first quarter of 2022. This is Netflix's first subscriber decline in a decade.
Even Netflix is expected to lose 2 million subscribers again within three months from April to June, as reported by us from CNET, Thursday (21/4/2022).
In its first-quarter 2022 earnings report, Netflix said that Russia's war in Ukraine and its sanctions were affecting their subscriber base. Another factor is the password sharing feature in many homes.
"It's becoming increasingly clear that the pace of growth into our targeted market (broadband home) depends in part on factors we don't directly control, such as connected TV usage, adoption of on-demand entertainment and data costs," Netflix said.
"We believe these factors will continue to improve over time, so that all broadband households will become potential Netflix subscribers," the company added.
Netflix's subscriber count fell from 221.84 million to 221.64 million during the January to March period. Previously, it was predicted that Netflix subscribers would increase to 2.5 million in that period.
Netflix says it's focused on finding the best way to monetize accounts other than those who live in the same household. They admit that the account sharing feature may be able to drive growth rates.
It is estimated that Netflix can reach 222 million paying subscribers with an additional 100 million from accounts living in the same household, including 30 million accounts from the United States and Canada.
"Account sharing as a percentage of our paid membership hasn't changed much over the years, but coupled with the first factor, it means it's harder to grow membership in many markets," Netflix said in a statement.
"While we won't be able to monetize everything at this time, we believe this is a great short to medium term opportunity." he continued.
Since the beginning of the COVID-19 pandemic, Netflix has experienced a surge in users where there is a lockdown policy that requires people to work from home so many need entertainment.
Meanwhile, Netflix also has to face fierce competition that has sprung up, such as Disney Plus and HBO Max, which offer similar services with more interesting content. No wonder this is also a factor in Netflix losing its subscribers.