Netflix lost subscribers for the first time in a decade at the start of the year and said it expects to lose even more.
According to its first-quarter 2022 earnings released on April 19, the streaming giant lost 200,000 global subscribers in the first three months of the year, bringing its paid global subscriber base to 221.6 million from 221.84 million at the end of 2021.
Netflix added that it expects to lose two million global subscribers in the current second quarter.
“Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration — when including the large number of households sharing accounts — combined with competition, is creating revenue growth headwinds,” Netflix said in a note to investors.
The company blamed a number of factors for the decline, including intense competition, the Russian invasion in Ukraine, the economy, slowing rollout of broadband, and the estimated 100 million people who share their accounts with non-paying households.
Netflix said that its decision to pull out of Russia due to the war cost them 700,000 subscribers.
The company also lost 600,000 subscribers in the U.S. and in Canada after price increase.
Netflix hinted that it would expand its crackdown on people sharing their Netflix accounts with other households.
“Our plan is to reaccelerate our viewing and revenue growth by continuing to improve all aspects of Netflix — in particular, the quality of our programming and recommendations, which is what our members value most,” the company also said.
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