Netflix reported that it lost 200,000 subscribers in the first quarter of 2022. This is the company's first drop in subscriber numbers in a decade and is expected to lose another 2 million during April to June, according to Netflix.
In its first-quarter earnings report, Netflix said Russia's invasion of Ukraine and its continued sanctions had affected membership numbers. In addition, password sharing and other factors also contributed to this decline.
“It is becoming increasingly clear that the pace of growth into our target market (broadband home) depends in part on factors that we do not directly control, such as connected TV usage, adoption of on-demand entertainment and data costs,” the company said in a statement. . “We believe these factors will continue to improve over time, so that all broadband households will become potential Netflix subscribers.”
This video-based media streaming platform application recorded a decrease in the number of subscribers from 221.84 million to 221.64 million during the January to March period. This is in contrast to the previous prediction which projected an increase of 2.5 million subscribers in the period.
After enjoying a surge in popularity at the start of the pandemic from people isolating at home and needing entertainment, Netflix subscriber growth has been unstable for more than a year. The company even lost customers from its biggest markets, the US and Canada for a quarter in 2021, for the first time since 2019.
Netflix is also facing a wave of competition from newcomers like Disney Plus and HBO Max. Rare subscriber losses in the US and Canada hint that new competition, centered on the US, may be weighing on Netflix membership growth in those countries.