As the first quarter of the year ended, Netflix revealed its subscribers count on Tuesday. For the first time in the decade, the leading OTT platform has lost a large number of subscribers in a limited duration.
Being considered one of the top OTT platforms on a global scale, Netflix has provided many mass entertainers, documentaries and series to its subscribers. However, the first quarter of the year 2022 doesn’t look good for Netflix. The company blamed these subscribers shrank to the war between Russia and Ukraine.
Netflix mentioned 221.6 million subscribers by the end of the first quarter, which is comparatively less than the numbers shared from last year.
The company also shared a net income resulting of $1.6 billion. This amount again is comparatively low that the net amount evaluated in the last quarter of 2021. These figures have even affected the share price of Netflix in the market. The company’s shares plunged by around 25% raising concern in the market.
Netflix mentioned, “We’re not growing revenue as fast as we’d like,”. they further added, “Covid clouded the picture by significantly increasing our growth in 2020, leading us to believe that most of our slowing growth in 2021 was due to the Covid pull forward.”
The account sharing services of Netflix are also thought to be a reason behind the loss of subscribers recently, as nearly 222 million households are paying off the OTT services. While around 100 million users are not paying for the streaming services. Other OTT platforms like Disney and Apple also provide intense competition to the company.
According to Netflix, the factors that have affected its growth are the loss of services in Ukraine and Russia amidst the war and the situation of pandemics. The leading OTT platform is looking forward to improving the customer’s experience in all aspects.
