In the first quarter of 2022, Netflix lost 200,000 subscribers.
Netflix expects to lose another 2 million users in the second quarter.
The streaming company announced its first 2022 quarter release. Netflix reported 221.84 million subscribers at the end of 2021.
On March 31, 2022, Netflix illustrated a considerable drop in its subscriber numbers. From 221.84 million to 221.64 million.
It is the first time Netflix lost subscribers during a quarter in the last decade.
However, they are not accounting for all the lost users in Russia. Netflix ended its streaming services due to the invasion.
The streaming company forecasted 2.5 million net adds in the first quarter.
Wall Street analysts expected Netflix to add 2.8 million new subscribers worldwide in the first quarter of 2022.
The expectation performed poorly in comparison to the positive projections made by Wall Street and FactSet.
How Netflix lost users?
In January 2022, Netflix announced an increase in its monthly subscription in two years.
According to numbers, Netflix lost 600,000 customers in the United States and Canada caused of the price change.
However, the streaming company also said it tightened the procedure on customers who share passwords.
According to Netflix,100 million households are using the streaming platform service by sharing passwords.
“It’s harder to grow membership in many markets,” as a result of the situation, Netflix said.
On Tuesday, Netflix closed its stocks at $348.42 per share. The streaming company fell by more than 22% after the first quarter numbers revealed millions of lost users.
“We’ve got to compete, and we’ve got to continue to improve on the core service which is making TV series and films and now games that people really love,” co-CEO and chief content officer Ted Sarandos said.
“That’s what we’re really focused on and that’s a thing we can continue to grow the business in.”
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