Netflix acknowledged stakeholders about losing 200,00 subscribers for the first time in over a decade, according to its earnings report for the first quarter of 2022.
The company announced that it lost 600,00 subscribers and this regression comes after its exit from Russia. Also, 700,00 subscribers in the U.S. and Canada quit after the latest rising prices.
Another two million subscribers anticipated to disappear from the streaming platforms in the upcoming quarter, as Netflix honestly explained the situation to its subscribers.
The continued increase of streaming cost is one of the initial reasons for the slump including viewers having canceled their subscriptions in order to save money.
One of the plans to deal with this crisis by cracking down on password sharing.
Netflix is blaming more than 100 million shareholders for sharing their password. This is against the regulations and stricter action will be taken in this area.
Netflix chief executive Reed Hastings said: “When we were growing fast, it wasn’t a high priority to work on [account sharing]. And now we’re working super hard on it.”
Despite all the evacuation, Netflix considers the market leader over 220 million subscribers. Adding that the results meet their expectations, and the number of subscribers should increase in the future.
Netflix’s income was up by 9.8 percent at $7.8 billion, compared to the same period last year. While, the growth has slowed down considerably and profits are down by 6 percent.
The latest quarterly earnings also resulted in the company’s share price tanking by a significant 20 percent in after-hours trading.
Last year, it offered a gaming service with no extra cost to attract new subscribers and to maintain the existing users.
