When the Covid lockdowns started, Netflix experienced a significant increase in growth. After many of the lockdowns ended, the company has had to admit they must crack down on password sharing in order to keep their numbers up. Many consumers have shared their accounts with friends and family members over the years. Due to the large amount of password sharing, the company is changing its policies to prevent people from doing that.
Netflix revealed that from the last quarter to now, the streamer lost 200,000 subscribers. However, the numbers need to be provided with context. The company really lost 700,000 customers largely due to the suspension of services in Russia because of the invasion of Ukraine. On the flip side, Netflix gained 500,000 subscribers during the same period. With the increase and decrease, the corporation had a net loss of 200,000 consumers.
MOVIEWEB VIDEO OF THE DAY
Subscriber Numbers Were a Disappointment for Netflix
The numbers were a disappointment for Netflix. Initially, the company expected to gain 2.5 million subscribers during the quarter. Instead of a substantial gain, the company went through a pretty hefty loss. Estimates were off by a factor of 2.3 million. The result was far lower than previous predictions.
The future is not looking good, either. Right now, Netflix believes it will lose 2 million customers in the next quarter. For comparison, the streaming service gained 1.5 million people at the same point last year.
Recently, Netflix wrote a letter to shareholders related to the company’s potential growth. The letter reads:
The letter goes on to discuss the monetization of sharing. The letter continues:
There was some positive news for Netflix. The company had a 10% increase in revenues year-over-year. Expectations are for the streamer to have another 10% revenue gain in the next quarter. However, changes will be made to ensure subscriber numbers do not plummet further than they already have.
