Netflix Loses Subscribers: Streaming giant Netflix has reported a 20 percent drop in its stock after it reported a loss of 2 lakh paid subscribers in the first quarter of 2022. In addition, Netflix estimates that there may be a loss of two million subscribers in the second quarter of 2022.
The Russia-Ukraine war has dealt a major blow to the legendary OTT platform Netflix. For the first time in more than a decade, online video streaming platform Netflix has seen subscriber cuts. According to the quarterly results released on Tuesday, Netflix lost about 2 lakh subscribers in the first quarter of this year, January-March 2022, while the OTT platform had an estimated addition of 2.5 million subscribers in the last March 2022 quarter. Now in the April-June quarter also the loss of 20 lakh subscribers is estimated. Netflix had 221.6 million subscribers at the end of the March quarter.
Tesla CEO Elon Musk tweeted “The woke mind virus is making Netflix unwatchable,” in response to a post stating that this was the first time in 10 years that Netflix has seen such a fall in subscribers.
The woke mind virus is making Netflix unwatchable
— Elon Musk (@elonmusk) April 20, 2022
Netflix has informed in a press release that ‘we are not growing revenue as fast as we would like. We benefited a lot after the corona epidemic in 2020 but did not get many benefits in 2021. Netflix estimates that around 222 million households are paying for the service for live streaming.
Netflix said the main challenge for subscription growth is to continue soft takeovers across regions. Netflix said it is making good progress in APAC “where we are seeing good growth in various markets including Japan, India, the Philippines, Thailand, and Taiwan”. Its revenue reached $7.78 billion in the first quarter. Net cash generated from operating activities in the first quarter was $923 million.
Netflix is now planning to make account sharing paid to make it profitable, in which subscribers will have to pay something extra for sharing ID-password with anyone. The company has also started this feature in some countries. Apart from this, it is working on a plan to introduce low-cost and advertising versions.