Netflix lost subscribers for the first time in ten years

AGI – Global streaming giant Netflix lost subscribers in the first quarter of 2022 for the first time in more than a decade and estimates another contraction in the second quarter.

Netflix lost 200,000 subscribers in the first quarter, Much less than the modest expectations that it will add 2.5 million subscribers. The decision to suspend service in Russia in early March after the invasion of Ukraine resulted in the loss of 700,000 subscribers. Netflix, which currently has 221.6 million subscribers, last reported a customer loss in October 2011.

The most popular broadcasting platform then showcased Dim forecast for spring quarter, with another 2 million subscribers estimated to loseDespite the return of the long-awaited series such as “Stranger Things” and “Ozark” and the appearance of “The Gray Man” starring Chris Evans and Ryan Gosling.

revenue growth

First-quarter revenue rose 10% to $7.87 billion, but less than Wall Street’s forecast of $7.93 billion. Profits fell to 1.6 billion from 1.71 billion in the same period last year. Explaining the difficulties in acquiring new customers, Netflix said: “The large number of families sharing accounts, combined with competition, is creating headwinds for revenue growth. Covid’s big push for streaming has recently clouded the picture.”

However, the world’s most popular streaming service was expected to see a slowdown in growth between them Intense competition from established competitors such as, Walt Disney Co., newly established Warner Bros. Discovery Inc, and new entrants such as Apple.

Streaming services spent $50 billion on new content last year in an effort to attract or retain subscribers, according to specialist Ampere Analysis. This is a 50% increase from 2019, when several new streaming services were launched, indicating the rapid escalation of the so-called “streaming wars”.

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With growth slowing in “mature markets” like the US, Netflix is ​​increasingly focusing on other parts of the world and investing in local language content. “While hundreds of millions of homes are paying for Netflix, more than half of the world’s broadband homes still don’t, representing huge potential for future growth,” the company said in a statement.

Netflix has managed to raise subscription prices in the US, UK and Ireland To fund content production and growth in other parts of the worldAs in Asia, Wedbush analyst Michael Butcher noted. However, subscriptions to these growing markets fall short of expectations.

‘Netflix’ headline sank after a disappointing quarter. In the aftermath of Wall Street trading hours, shares of the global broadcasting giant lost 22.5%.

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