In the last quarter of 2022, Netflix lost nearly 200,000 subscribers worldwide. This is the first time the company is offering such negative user numbers. But are these numbers really that bad? To turn the tide, Netflix tries to play different cards.

Last quarter, Netflix had a lower subscriber base than the previous quarter for the first time in a long hiatus. About 200,000 less than in the last quarter of 2021. The company expects to hit two million, losing more subscribers this second quarter.

While these numbers may sound troubling, there are many contributing factors. So after the Corona growth spurt in the last two years, it looks in place. After all, Thuisbezorgd’s parent company Just Eat simultaneously showed quarterly figures that the company had to process fewer food orders.

The Russian invasion of Ukraine is affecting Netflix’s numbers. After the start of the war, Netflix announced that it was no longer available in Russia, causing the company to lose 700,000 subscribers in one fell swoop. This means that if these Russian figures are not included, Netflix still saw global growth of 500,000 subscriptions in the last quarter.

After the pandemic, Netflix should stop, just like Thuisbezorgd.

More money and services

The market is also changing. More and more streaming services are popping up. For example, ViaPlay and HBO+ were recently launched in the Netherlands. The range of streaming services is huge, and compared to other services like Disney+, Amazon Prime Video, and Videoland, Netflix is ​​by far the most expensive streaming service. In recent years, Netflix has made several price hikes that further widen the price gap.

From this perspective, Netflix’s numbers are quite impressive. The reduced number of subscribers can be attributed to the war. Also, a 200,000 shrinkage out of the total 222 million subscribers is marginal. The company also shows net figures with an estimated turnover of 7.87 billion and a profit of 1.6 billion.

Scholarship determines

Still, these numbers are extremely worrying for Netflix. Why? The company is publicly traded and shareholders want to see growth at any cost. This situation was also reflected in the stock market figures. Netflix shares fell 26% after the quarterly figures were released.

To get the numbers back, Netflix has a few plans. First of all, the company is trying to break into a new field: mobile gaming. It’s a market with insane amounts of money involved, especially thanks to in-app free in-game purchases. After the announcement of the game and animation series Exploding Kittens, Netflix is ​​already taking its first step in May of this year.

Netflix is ​​also playing around with the idea of ​​cheaper subscriptions with ads. Spotify, for example, also has the ability to listen with ads for non-paying users.

Netflix Exploding Cats

With Exploding Kittens, Netflix will soon be coming up with its own mobile game.

bad blood

However, there are also worrisome plans. Netflix, for example, says it really aims to tackle account sharing. For example, the company plans to charge an extra fee for each user who does not live at the same address. A significant change that many subscribers may not appreciate, of course. Netflix has always allowed this, which has helped the company’s image. Such a change of direction may lead to more revenue in the short run, but only raises the challenge of keeping shareholders happy in the long run.

Netflix estimates that 100 million households worldwide share accounts, and the percentage of accounts shared remains about the same. In a shareholder note, Netflix states: “Account sharing has likely contributed to our growth by allowing more people to use and enjoy Netflix. We’ve always tried to make sharing at a member’s home easy with features like profiles and multiple streams.” With this, Netflix shows that taxing account sharing can come at the expense of Netflix’s growth.

Source: Computer Totaal

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I am Bret Jackson, a professional journalist and author for Gadget Onus, where I specialize in writing about the gaming industry. With over 6 years of experience in my field, I have built up an extensive portfolio that ranges from reviews to interviews with top figures within the industry. My work has been featured on various news sites, providing readers with insightful analysis regarding the current state of gaming culture.

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