Netflix Loses 200000 Subscribers – You need to know that Netflix ends its first quarter of the year by having 221.6 million subscribers which are little less as compared to the final quarter of the previous year.
Netflix Loses 200000 Subscribers In Less Than 100 Days, Here’s Why
Netflix shares lost a quarter of their value Tuesday after the company revealed its ranks of subscribers shrank in the first 3 months of the year. It was the very first time in a decade that the biggest streaming television service lost its subscribers. The company blamed the quarter-over-quarter erosion on the service suspension in some countries.
Later on, Netflix ended the first 3 months of this year by having 221.6 million subscribers and which is slightly less compared to the final quarter of the previous year. The Silicon Valley tech firm reported a net income of $1.6 billion in the previous quarter as compared to the $1.7 billion in the same time of the earlier year. Netflix shares were also down 25 percent to $262 in the after-market trade which will follow the release of the earnings figure.
Netflix said in a warning letter that we are not growing revenues as fast as we would like. Covid clouded the image by simply increasing the growth in the year 2020 and lead us to simply believe that our slowing growth in the year 2021 is mainly affected by the covid. Netflix said that the factors which are hampering the growth will also include the time it takes for the homes to simply get access to the affordable broadcast internet service and also the smart TV with the subscriber sharing their account with those people who are not living in their homes.
Netflix also estimated that it is having nearly 222 million households who are paying for its service and the accounts will get shared with more than 100 million other households who are not paying for the TV streaming service. The account sharing is the percentage of our paying membership which doesn’t change over the years but some with the first factor means it’s tough to grow the membership in lots of markets said Netflix.
Last year, Netflix started testing the methods to simply earn money from the people sharing account by adding a feature that allows the subscribers to pay slightly more to add the other household. Another factor for Netflix is intense competition from titans like Apple and Disney.
Their plan is to simply reaccelerate the viewing and also the growth in revenue by simply continuing to improve all the aspects of Netflix and into a particular quality of the programming and also the recommendations, Netflix said that adding it is “doubling down” on the content creation.