Netflix Announced Losing Subscribers

Netflix has announced that it is losing subscribers. Netflix lost subscribers for the first time since 2011.

Netflix, the platform for watching TV series and movies online, lost subscribers for the first time since 2011. Announcing that it lost 200 thousand subscribers in the first quarter of 2022, the shares of Netflix lost 25 percent of its value. Netflix, which is expected to restrict password sharing to increase its revenue, stated that more subscriber loss is expected. According to Netflix, which has more than 220 million subscribers worldwide, passwords are shared by 100 million households. Netflix CEO Reed Hastings said, "Working on [account sharing] wasn't a priority as we were growing rapidly. We're working very hard on that right now." Commenting on the company's start of advertising efforts to generate revenue from subscribers who share their accounts, Hastings said, "Followers of Netflix know that I am against the complexity of ads and favor simplicity of subscription. But as much as I am a fan of it, I am a bigger fan of consumer choice." Netflix increased its subscription prices after losing 700 thousand members due to its withdrawal from Russia. The company's revenue in the first quarter of this year reached $7.9 billion, an increase of 9.8 percent compared to the same period last year. The company's profit in the first quarter, on the other hand, decreased by 6 percent compared to the same period of the previous year, to 1.6 billion dollars.