If you’ve been side-eyeing your Netflix account recently, you’re not alone. During the company’s first quarter 2022 earnings report, it was revealed that the …
If you’ve been side-eyeing your Netflix account recently, you’re not alone. During the company’s first quarter 2022 earnings report, it was revealed that the streaming giant had lost 200,000 subscribers in the first quarter of this year. But perhaps the most interesting insight from this report is the revelation that Netflix plans to lose even more subscribers. And to combat the massive subscriber loss, and subsequent stock plunge from the announcement, the streamers plans to crack down hard on password sharing. According to Variety, in January, Netflix reported that it had 221.84 million subscribers. This latest earnings report revealed that number has dropped to 221.64 million subscribers. As steep as that loss is, it’s nothing compared to its bigger predicted departure. The company announced that it expects to lose another 2 million subscribers in its second quarter, which is currently happening. The streaming service reported an operating income of $1.97 billion as well as a net income of $1.6 billion. The company cited four reasons for its loss: the rate of adopting on-demand entertainment and data costs, account sharing, steep streaming service competition, and “macro factors.” That last category covers everything from further delays and upsets caused by COVID-19, inflation, slow economic growth, and Russia’s invasion of Ukraine. In early March, the streaming service announced that it had suspended its streaming service in Russia.
