New Delhi: On Tuesday, the digital giant Netflix’s shares lost a quarter of their worth after the firm disclosed the drop in its subscribers in the first quarter in the current year 2022.
This happens to be the first time that the popular platform has lost such large number of its subscribers in over a decade. The streaming service has blamed the quarterly corrosion to adjournment in its service in Russia, due to the ongoing war between Moscow and Ukraine.
The company has concluded the first quarter this year with 221.6 million subscribers,
Netflix ended the first quarter of this year with 221.6 million subscribers, marginally less than the previous quarter last year in 2021.
The tech firm’s net income for the previous year in the same period was counted to be $1.7 billion, while a year later in the recently concluded quarter it is reported to be $1.6 billion. Following the revelation of its earning figures, the firm saw a downfall of some $262 in the after-market trades.
“We’re not growing revenue as fast as we’d like. 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”, Netflix said in an earnings letter.
The company believes that its growth is seeing hindrances due to the revision of its affordable plans for internet and smart televisions, and the problems subscribers are facing in sharing their accounts with others.
“Account sharing as a percentage of our paying membership hasn’t changed much over the years, but, coupled with the first factor, means it’s harder to grow membership in many markets,” Netflix said.
Netflix is also constantly facing strong competition from its fellow titans including Amazon Prime Video, Disney+ Hotstar, Apple, and more.
