Netflix Loses 200K Subscribers and 2 Million more to lose – Here’s Why

Netflix has just announced that it has lost around 200k subscribers last quarter. The company also reported that its revenue growth has slowed down considerably. Not only this but Netflix is going to lose two million more subscribers this current quarter. No doubt, Netflix is facing fierce competition with other services as well as having over 40% of its user base being unpaid subscribers.

Netflix Loses 200K subscribers and 2 Million more to lose – Here’s Why

Due to the loss of 200k subscribers, Netflix’s shares dropped more than 20%. The decline in revenue is caused by many factors. One of the main reasons is its unpaid subscription. With over 222 million paying households, their subscriptions are being shared with over 100 million more homes. 30 million of these unpaid accounts are in the United States and Canada. To overcome this problem, Netflix has cracked down on password sharing by testing a new add-on to its service.

The other reason is the increasing competitors. It has become difficult to survive in a pool of powerful rivals.  Poor economic growth, rising inflation, and the war between Russia and Ukraine have also impacted these results. Netflix also revealed that it lost 700,000 subscribers in Russia by eliminating its service there.

Netflix plans to redeem itself by focusing on the quality of its programming and recommendations for its viewers. The company is busy now adding more easy and friendly features to its service. Just recently, the company has added a “two thumbs up” rating to improve recommendations.

Similarly, Netflix is also planning to release the animated series and mobile game, Exploding Kittens. The company is now expanding its international market by producing movies and TV in over 50 countries. Hopefully, these steps will help Netflix increase its revenue growth.

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