Netflix has lost as many as 200,000 subscribers in mere 100 days, which is well below its target of adding 2.5 million subscribers. It is for the first time in a decade that the OTT platform had lost subscribers.
Netflix reported a net income of $1.6 billion in the recently ended quarter, compared to $1.7 billion in the same period a year earlier. The shares of the OTT platform were down by some 25% to $262 in after-market trades that followed the release of the earnings figures.
The company blamed the suspension of its services in Russia for the plunge in its subscriber count. Netflix had announced to temporarily ban its services in Russia amid its invasion in Ukraine.
Sharing of accounts with friends and extended family is also one of the main reasons that have impacted the growth of Netflix. The Silicon Valley tech giant estimated that while it has nearly 222 million households paying for its service, accounts are shared with more than 100 million other households not paying the television streaming service.
According to media reports, Netflix said, “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.”
Another reason for the plunge in subscribers involves intense competition with other OTT platforms like Amazon Prime and Disney Hotstar.