Netflix Loses 200K Subscribers In Less Than 100 Days, Expects 2 Million More To Leave Soon. Here’s Why

New Delhi: Netflix suffered its first subscriber loss in more than a decade, causing its shares to plunge 25 per cent in extended trading amid concerns that the pioneering streaming service may have already seen its best days. The company’s customer base fell by 200,000 subscribers during the January-March period, according to its quarterly earnings report released on Tuesday. It is the first time that Netflix’s subscribers have fallen since the streaming service became available throughout most of the world. The drop this year stemmed in part from Netflix’s decision to withdraw from Russia to protest the war against Ukraine, resulting in a loss of 700,000 subscribers.Also Read – Nimrat Kaur’s ‘Cleavage’ Picture Unsettles a Twitter User, Internet Asks Him to Clear The Dirt From Mind – Check Tweets

Netflix, which currently has 221.6 million subscribers, last reported a loss in customers in October 2011. Netflix offered a gloomy prediction for the spring quarter, forecasting it would lose 2 million subscribers, despite the return of such hotly anticipated series as “Stranger Things” and “Ozark” and the debut of the film “The Grey Man,” starring Chris Evans and Ryan Gosling. Wall Street targeted 227 million for the second quarter, according to Refinitiv data. Also Read – Suhana Khan-Khushi Kapoor Set For Big Debut With Zoya Akhtar’s The Archies – Shoot Begins!

Here’s why Netflix lost 200,000 subscribers in first part of the year

Netflix believes that factors hampering its growth include the time it is taking for homes to get access to affordable broadband internet service and smart televisions, along with subscribers sharing their accounts with people not living in their homes. Also Read – Netflix Adds ‘Two Thumbs Up’ Rating Option to Offer Better Recommendations

The streaming giant estimated that while it has nearly 222 million households paying for its service, accounts are shared with more than 100 million other households not paying the television streaming service.

“Account sharing as a percentage of our paying membership hasn’t changed much over the years, but, coupled with the first factor, means it’s harder to grow membership in many markets,” Netflix said.

Netflix last year began testing ways to make money from people sharing accounts, such as by adding a feature that lets subscribers pay slightly more to add other households.

Another factor for Netflix is intense competition from titans such as Apple and Disney.

“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,” Netflix said, adding that it is “doubling down” on content creation.