Netflix Loses 200K Subscribers In Less Than 100 Days, Here's Why

Netflix which is of the most loved streaming platforms worldwide has witnessed a great decline in the number of its subscribers in the 1st quarter of 2022.

On Tuesday 19 April, the shares of the OTT platform lost a quarter of their value after the leading firm unveiled its ranks of subscribers shrank this year.

Netflix lost around 200,000 subscribers within 100 days which ultimately resulted in the fall of its value and its shares drops 25% in extended trading.

Notably, this is the first time in over ten years that the global streaming giant has lost its subscriber and experienced such a huge loss.

According to the company, the reason for this loss of subscribers includes major factors like inflation, the Russian invasion of Ukraine and fierce competition.

During the war between Russia and Ukraine, the streaming service has withdrawn services from Russia to protest the war against Ukraine and this resulted in the loss of 700,000 subscribers.

Moreover, on Tuesday Netflix Inc also informed that deeper losses in the future in predicted leading to an abrupt change in fortune. The company projected a loss of another 2 million subscribers in the 2nd quarter of this year i.e. in the period from April to June.

As per the quarterly earnings report released yesterday, the customer base of the company fell by 200,000 subscribers during the period from January to March.

The America-based production company reported a net income of 16 billion dollars in the last ended quarter as compared to 17 million dollars in the same period of the previous year.

In the earnings letter, the company said that 'we are not growing revenue as fast as we would like.' According to Netflix the hamper in its growth is due to the reasons such as less access to affordable broadband service in homes and subscribers across the world are sharing the same accounts with others.

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