After 10 years of sitting its reign as one of the best online subscription movie streaming services, Netflix eventually lost its subscriber counts. From January to March, the online platform has counted numbers loss from 22.84 million to 221.64 million. It is a huge number to date. And the key to the Netflix losing a hundred thousand subscribers are the password-sharing accounts.
Million Subscriber Number Shaved Out In The First Quarter Of 2022
Based on cnet.com, the number of subscriber flops in the first quarter of 2022 is pretty high. The number reaches around 200,000 people, which is the first time happened after a decade of Netflix life. With that number in the early year, many forecasts that the number will have an exponential increase in the three months from April to June.
As a streaming service based on subscriber numbers, this drop is a pretty warning. The number loss mentioned from January through march itself is around 20 million people. It might also increase in a short period. Surprisingly enough, the focus on sharing accounts might backfire on Netflix.
Netflix losing a hundred thousand subscribers has affected varying aspects of the company, including the 25% plummet in shares. It also includes the stock that dropped as much as 40% since the beginning of the year. Along with the crazy sharing account hits and many other factors, which affect the profit dropped from $1.7 billion to $1.6 billion this year.
The Password Sharing Situation
Netflix’s idea of sharing accounts itself is meant to improve and attract more viewers. It helps fuel the growth since families can use the same account together. But unfortunately, the 222 million paid users counts are somehow shared roughly in 100 million households. And the worst thing is that the sharing happens in the US and Canada, the prime market for Netflix.
With the number increase and attractive offers on the sharing account, Netflix currently focuses on monetizing more. The idea is not mainly to shutting down the sharing value, but to ask the users to pay a bit more for the service. It helps counter the Netflix losing hundred thousand subscribers and also get the proper value associated with the view numbers.
Russia’s War In Ukraine
Citing to cnet.com, the first quarter subscriber drop might also come due to Russia’s war in Ukraine situation. The subsequent sanctions indirectly affected the number of subscribers. But the main issues mainly come from password sharing in the multiple households spread across countries and places.
The Wave Of Competition
While some other factors such as connected Tv, data cost, and on-demand entertainment can also affect the situation, Netflix also mentions the competitive market. Currently, Netflix has to face the new rivals of HBO max and Disney plus which have similar services. The pressure of new media and tech giants in the US eventually contribute to Netflix losing hundred thousand subscribers.
It is not a surprise that the paid platform has shown a high and low rate during the Covid and after the pandemic. In this case, Netflix subscriber loss is also related to many factors, including competition and the war situation in Russia. The main problem is the password and account sharing which contribute to the huge loss.