less than a week ago, Netflix revealed that up to 221.6 million Subscribers were registered on the platform during the first quarter of 2022. In contrast, 221.8 million User subscriptions were recorded in the fourth quarter of 2021. After that, the global broadcasting giant suffered from Loss From 200,000 Subscribers for the first time in their decade-long history. As a result, Netflix has issued a warning that it has launched a global password-sharing hack. This change may eventually cause the user to pay an additional fee for sharing their account credentials outside the home.
Netflix a statement Report its quarterly results among the shareholders. The world’s largest broadcasting giant stated in the message:
“Our relatively high household penetration – when the large number of joint households are included in the calculations – combined with competition, creates headwinds for revenue growth”
It is worth noting that Netflix lost nearly 700,000 subscribers during March 2022. The drop in user base occurred when Netflix suspended Its services in Russia after it invaded Ukraine.
On the other hand, Netflix gained immense popularity among the masses when COVID shook the entire global community. People were stuck at home during the pandemic and ended up sticking to their screens to watch different shows and movies on Netflix.
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Netflix faces stiff competition from competitors
Some competition from other streaming platforms (Amazon Prime Video, Hulu, Disney+) and password sharing has put Netflix in quite a bit of trouble lately. The concept of unique users signing up for Netflix has declined significantly in the recent past mainly due to two reasons mentioned above.
Netflix is determined to limit financial losses as well as increase the number of subscribers on the platform. According to the global broadcasting power, some new measures will be implemented including charging users for sharing passwords. On top of that, the company also talked about launching an inexpensive, ad-supported plan.
However, co-founder of Netflix, Red Hastings Some other ideas but open to change. He said:
“Those who have followed Netflix know I have been against the complexity of advertising. I am a fan of simpler subscription. But as much as I am, I am a huge fan of consumer choice. Allowing consumers who want a lower price and are tolerant of advertising to get what they want makes sense. Extremely “
According to Netflix, there are more than 100 million households that do not pay for streaming services. However, they enjoy a wide range of content available on the platform. in Advertising Netflix last week revealed a plan to charge users in Chile, Costa Rica and Peru an additional fee. The same strategy will be applied to other countries as well. But, it remains to be seen when these changes are actually implemented and how users take them up.