Netflix has released its quarterly financial results that show the streaming service’s subscriber base has dropped for the first time in a decade. According to the company, the net drop in 200,000 subscribers is mainly due to the interruption of service in Russia. Excluding Russia, 500,000 new subscriber growth is reported.
In the short term, the company says it has also lost users due to the increased rates, and many potential revenues are lost through account sharing. In addition to the current 222 million paying households, Netflix estimates that 100 million households, including 30 million from the US and Canada, use the service with a shared password.
A month ago, it turned out that there were experiments with sub-accounts paying sub-accounts connected to a main subscription. However, Netflix operator and cpo Greg Peters notes that it may take another year for this measure to be implemented globally.
According to co-founder and CEO Reed Hastings, there are other potential measures to make Netflix more accessible. For example, the company is considering offering a cheaper subscription partially supported by ads. Although it seems that the focus is on matches at the moment, it is also possible to broadcast live sports matches.
In November, Netflix introduced its first games for Android devices.
Quarterly revenue increased by 10% compared to the first quarter of 2021 despite declining subscribers, while Netflix expects the downward trend in users to continue until Q2. Another two million subscribers are expected, although sales are expected to increase again by 10 percent compared to the same quarter in 2021.
Sources: Netflix, Deadline
Source: Hardware Info
