The streaming giant Netflix lost around 200,000 subscribers during the first quarter of this year and its executives anticipate that another two million users might cancel their accounts between April and June, for the first time in a decade.
The news was released by the specialized site Indie Wirewhich specified that At the end of the January-March period, the company had 221.64 million subscribers, This figure is lower than the almost 221.84 million it had at the end of 2021.
After the dissemination of such discouraging data, netflix stock sank more than 20 percenta fact assumed by the duo of CEOs Reed Hastings and Ted Sarandos through a statement, in which they admitted that their profits “slowed down considerably”.
“Streaming is beating cable TV, as we predicted, and Netflix titles are very popular globally. However, our household penetration, including those sharing the same account, combined with the competition, generates headwinds. The enormous boost of covid-19 to streaming darkened the picture until recently, “says the text.
The company will try to reverse the drop in its income applying an additional cost to those who share their accounts with other people outside their homes, a surcharge that is already being implemented in some Latin American countries, and that has already caused more criticism and doubts than confidence regarding its effectiveness.
