Over the past decade, streaming giant Netflix has led the OTT world. And now, for the first time in over a decade, the number of Netflix subscribers has dropped. The streaming company lost 200,000 members in the first three months of the year. It is feared that Netflix will lose another 200,000 members in the next three months. The collapse was triggered by a rise in subscription fees in major Netflix markets, including the United States and the United Kingdom, after the business was shut down in Russia. The landslide reduced their revenue by 25 percent. Netflix reported this information on Tuesday.
. . . . . . . . . . . . . . . . .
Netflix is taking steps to stop account sharing for fear of further losses. The company said it would take steps to increase the number of new customers. It is estimated that about 100 million account owners have shared their passwords. They are also thinking of showing advertisements to make up for this loss.
Boss Reed Hastings, co-founder of Netflix, said: And now we are working hard for that. ‘
Lucas Shaw told the BBC that Netflix had been suffering from password sharing problems for some time. This seems to be a major obstacle to the company’s potential revenue growth. They have worked to prevent password sharing before and are now having a very difficult time.
Netflix lost seven million subscribers as it cut off business from Russia after the invasion of Ukraine. In addition, the increase in subscription fees has reduced the number of members in the United States and Canada by another six million.
Paolo Pescatore, an analyst at PP Forsyth, said the declining customer base was a “reality check” for the company. Because, as it increases the revenue of the company, it also tries to maintain the balance to retain the customer. Netflix is facing stiff competition, they said, citing a drop in subscribers. Traditional media companies, from Amazon and Apple to Disney, are spending money on their online streaming services. The competition is increasing.
The OTT giant’s subscribers are also declining due to the economic downturn, Russia-Ukraine conflict, slowdown in broadband expansion, sharing of Netflix accounts, etc.
Note that the number of subscribers of Netflix decreased in October 2011. At present, they have over 22 crore customers worldwide.