Netflix Subs Take the First Nosedive in a Decade; Blames it on Password Sharing

Photo by Ussama Azam on Unsplash

American streaming giant Netflix has spent the past decade as a leading worldwide streamer. With dozens of fish swimming in the OTT sea, there’s a lot to catch up on – including retention of subscribers!

That’s the most obvious takeaway from Netflix’s latest admission. 

The streaming giant predicted that it will add over 2 million subscribers to its kitty – in the first quarter of the year. However, things went downhill and instead, it ended up losing 200,000! Even worse: Next quarter, Netflix expects to lose another 2 million subscribers. Netflix’s stock is now dropping to 25% after this admission!

Uh oh, this doesn’t look so good, right?

One, in a letter to shareholders, Netflix attributed its subscriber loss to a number of factors, including increased inflation and the Ukraine-Russia war which prompted Netflix to shut down its service in Russia.

Two, and this is serious.

Password sharing among households is another big reason for the subscriber trickle down. No more of “Bro, can you share your Netflix password?” – Oops!

More than 100 million households share their Netflix credentials and the streamer plans to tighten the screws on them. “We’re working on how to monetize sharing, just gotta get paid in some degree for them,” says Netflix co-CEO Reed Hastings.

But then – Netflix also lost 600,000 customers across the US and Canada largely as a result of its price hike.

On the upside, there’s also reason to smile for Netflix.  

After it reduced its subscription prices in India last December, Netflix witnessed an uptick in user engagement as it doubles down on creating more localised content. 

Too long? Here’s a one-liner: Netflix admits to subscriber downfall of 200,000 last quarter, says password sharing is partially to blame amongst other factors like war, inflation and increased competition.

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