Inflation, the Ukraine war, and fierce competition have contributed to a loss of 200,000 subscribers for Netflix:
Netflix has suffered the first loss in worldwide subscribers in its history, leading to a massive sell-off of its shares.Netflix has blamed inflation, the war in Ukraine, and fierce competition contributed to the loss of subscribers for the first time in more than a decade, and have warned of deeper losses ahead, marking an abrupt shift in fortune for a streaming company that thrived during the pandemic.
"Those who have followed Netflix know that I've been against the complexity of advertising, and a big fan of the simplicity of subscription," said Netflix CEO Reed Hastings.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.
"When we were growing fast, it wasn't a high priority to work on," Mr Hastings said of account-sharing in remarks during Netflix's investor video.Netflix's first-quarter revenue grew 10 per cent to US$7.87 billion , slightly below Wall Street's forecasts. Account-sharing is a longstanding practice, though Netflix is exploring ways to derive revenue from the 100 million households watching Netflix through shared accounts, including 30 million in the United States and Canada.
The world's dominant streaming service was expected to report slowing growth, amid intense competition from established rivals like Amazon.com, traditional media companies such as Walt Disney and the newly formed Warner Bros Discovery and cash-flush newcomers like Apple Inc. Netflix noted that despite the intensifying competition, its share of TV viewing in the United States has held steady according to Nielsen, a mark of subscriber satisfaction and retention.
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