Netflix announced that it has lost over 200K subscribers for the first time in a decade in their earnings result for Q1 of 2021. The company also expects to loss in subscribers to still continue.
Netflix claims the loss in subscribers is due to most users sharing accounts in households and only using one subscription to view and access movies and shows. Netflix shared that they estimated that 222 million paying users are sharing their account with another additional 100 million users who aren’t paying the subscription fee. They also blamed new streaming services for the loss in subscribers.
Netflix also claimed how they lost over 700,000 subscribers in Russia and claimed that it would’ve added 500,000 more subscribers if they weren’t suspended from operating in Russia.
Most subscribers have also cancelled their subscription due to the recent price hikes.
Netflix is planning to update it’s service by preventing account sharing and charging users who do an extra fee.
Netflix claimed that it expects to lose over 2 million subscribers in Q2 of 2022. In order to slow down the amount of users cancelling their subscription, Netflix plans to add a more cheaper version of their service with ads in the coming year.
