Netflix Loses Subscribers For First Time In A Decade & Believes It’ll Lose More

In a surprise report, Netflix has lost subscribers for the first time in 10 years, and has revealed it expects to lose even more in the near future. 

Naturally, the streaming service’s share price was sent plummeting by nearly 20% when news emerged it had said farewell to 200,000 subscribers worldwide during Q1 2022. In fact, the numbers went against industry estimates, with Wall Street having expected 2.5 million subscribers to join the platform instead. 

According to The Guardian, the company predicts it will lose a staggering two million subscribers in Q2. 

Writing to shareholders, Netflix said its revenue growth has “slowed considerably,” and that while the service’s titles are popular globally, its high household penetration, including “the large number of households sharing accounts,” has slowed its roll. 

For starters, Netflix has plans to improve “all aspects” of its offerings, with the company placing a particular emphasis on “the quality of our programming and recommendations,” which it posits is what “members value most.” 

Perhaps the brand’s mission to crack down on the sharing of passwords could be one of its attempts at salvaging its status as one of the world’s most popular streaming giants. 

In addition, on a call with investors, co-CEO Reed Hastings said the company could potentially consider widening the range of its plans, and may even add a lower-priced, ad-supported tier to lure more customers who won’t shell out at current prices. 

With all the competition in this space, could Netflix’s reign as the top dog be finally coming to an end? Or will the firm be able to pivot and find its footing once again with a different model? Viewers will soon find out. 

[via The Guardian and The Week, cover image via sitthiphong / Shutterstock.com]