After seeing massive growth during the pandemic, Netflix is now forced to admit it has run out of room to grow and will need to rely on measures to crack down on shared accounts to keep subscriptions growing.
Netflix said its total number of subscribers fell by 200,000 from the previous quarter. Netflix lost 700,000 subscribers due to the suspension of its service in Russia.
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But during that period, subscribers elsewhere grew by 500,000, so Netflix now has a net loss of 200,000 subscriptions.
Despite the surprise, that’s still a huge drop from Netflix’s original growth forecast of 2.5 million for the quarter.
Netflix now expects to lose another 2 million subscribers in the next quarter, up from 1.5 million in the same period last year.
In a letter to shareholders accompanying its first-quarter earnings report, Netflix acknowledged a “significant slowdown” in its revenue growth.
Netflix says competition from Hulu, YouTube, Amazon Prime Video, Disney+ and other streaming services remains fierce.
The company believes the biggest problem is that account sharing among multiple households is very common.