Netflix Users Has the Biggest Drop in History
For the first time in ten years, Netflix had a massive subscriber loss in Q1 2022. The company had the most significant single-day drop losing up to $54 million in market cap, and it warns of further loss into Spring.
The streaming giant's stock plunged nearly 25% after it was revealed that it had lost 200,000 members internationally in the first quarter. According to Wall Street, the company was expected to attract 2.5 million users. Instead, in the current quarter, Netflix expects to lose 2 million global customers as we move further into the current quarter.
The company attributes the loss to widespread password sharing, Ukraine Vs. Russian war and an increase in competition. Let's explore why Netflix experienced such a vast subscriber loss in history.
1. Crackdown on Password Sharing
After Netflix disclosed it had a massive loss in subscribers this week, it mentioned the prospect of a global crackdown on password sharing. Such measures could include users being charged a fee if they share their Netflix account outside their household.
In the last couple of years, intense competition from the other streaming platforms and password sharing has made it difficult for Netflix to attract new subscribers. While this seems like a great move, most people aren't entirely happy about it, and I think it's part of the reason why users are pulling out.
While most Netflix movies are watchable, often they're unmemorable. There are just so many titles that I bet no one even bothers to watch twice. Also, we can all agree that Netflix has a weak release schedule.
Someone needs to tell Netflix that we don't have to binge all ten episodes in a season all at once. They would probably try spreading out these episodes over months and release at least 3 per month.
3. Price Increase
Netflix always has a thing for raising its prices, and there's no problem with that as long as customers feel they're getting value for their money. But at the same time, Netflix has been a little too aggressive this time.
They have explained their move, saying that it was a net positive for revenue. Unfortunately, Netflix failed to check on its subscriber growth which is often one of the best indicators of a growing business.
About Author
Bilha Gitari
I’m a professionally trained content writer with 4+ years of experience. I pride myself on offering top-notch writing and editing services to versatile brands all over the world. My integrity, writing skills, and enthusiasm help me produce unparalleled, naturally-flowing, SEO-dense articles. My services include content writing, copywriting, e-Book writing, editing, press-release, website content, and product descriptions. https://www.linkedin.com/in/bilha-gitari-a691b1137/
No comments