How Much Money Does Netflix Lose A Year

Netflix says stronger competition, the Ukraine-Russia conflict and countersign sharing contributed to its first drop in customers in a decade. Jenny Kane/AP hide explanation

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Jenny Kane/AP

Netflix says stronger competition, the Ukraine-Russia disharmonize and countersign sharing contributed to its first drop in customers in a decade.

Jenny Kane/AP

Netflix has lost 200,000 U.S. subscribers in the first quarter of 2022, marking its first drop in customers in more than a decade, the company announced Tuesday.

It attributed the losses to factors such as stronger contest, the Ukraine-Russia conflict and password sharing.

In a letter to shareholders, the amusement visitor said it relied on password sharing within households to fuel growth early on, but that in addition to its 222 million paying subscribers, there are at present an estimated 100 million households using someone else'due south account.

"We've e'er tried to make sharing inside a member'southward household easy, with features like profiles and multiple streams," Netflix said in its statement. "While these take been very popular, they've created confusion almost when and how Netflix can be shared with other households."

The company said information technology sees the popularity of countersign sharing every bit an opportunity to convert more than viewers into paying customers.

"Nosotros actually see that second group as a tremendous opportunity, because they're clearly well qualified," Netflix's Chief Operating Officer Greg Peters said during Tuesday's earnings telephone call. "So now our job is to improve translate that viewing and the value that those consumers are getting into revenue.

Last month, Netflix said it won't ban password sharing, but it plans to start charging for it. It will exist testing the change in iii countries: Chile, Costa rica and Peru. For 2,380 Chilean pesos, two.99 U.S. dollars and 7.9 Peruvian sol, respectively, users tin add up to ii profiles.

Customers did not react well and some predicted people would brainstorm taking their business elsewhere.

Information technology will take about a year to run the tests and begin enforcing the change, which will somewhen make its way to the U.S. market, Peters said Tuesday.

The company has experienced higher streaming numbers since the COVID-nineteen pandemic, merely said in its statement that the boost has "obscured the film until recently."

Netflix'south get-go-quarter revenue outpaced terminal quarter, merely yr-on-twelvemonth growth has slowed. At the outset of 2022, Netflix grew ix.8% compared to a year agone, compared to a year-on-year increment of sixteen% at the finish of 2021.

Netflix forecast information technology would add two.v million customers this quarter, but lost 200,000 customers. That figure excludes the loss of 700,000 customers in Russia as a consequence of the country's invasion of Ukraine. The final fourth dimension the visitor reported a drop in customers was in October 2011.

Netflix said its current retention "remains at a very healthy level (we believe amongst the best in the industry)."

The platform saw its most engagement from scripted TV shows, including Inventing Anna, Bridgerton and Ozark; movies such as Don't Wait Up and The Adam Project; and reality tv set serial, including The Ultimatum and Selling Sunset, said Netflix CEO Ted Sarandos.

Co-ordinate to Nielsen, time spent watching streaming services deemed for 26% of full fourth dimension spent watching tv set in 2021. Of that, Netflix and YouTube had half-dozen% of viewing fourth dimension each, Hulu had 3% of the market, followed by Prime Video and Disney+, with two% and 1%, respectively.

Source: https://www.npr.org/2022/04/20/1093696190/netflix-password-sharing-lost-customers-2022-earnings-report-finances-viewers

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