San Francisco: Netflix reported on Tuesday losing customers for the second successive quarter as a giant streaming of fierce competition battles and highlands demand.
Losses of 970,000 customers who pay in the last quarter, however, less than expected, made the company only ashamed of 221 million customers.
Our challenges and opportunities are to accelerate the income and growth of our membership … and to further monetize our large audience,” the company said in its income report.
After years of gathering customers, Netflix lost 200,000 customers worldwide in the first quarter compared to the end of 2021, which sent parts of his plunge.
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The streaming giant reacts by announcing the arrival of advertisements on this service, with the aim of financing the investment needed to maintain its position as a leader in the launched industry.
Analysts record the results, even if it is not bad than the feared, it is still not good news.
Netflix’s customer losses are expected but remain a sick point for companies that depend on a subscription revenue from consumers,” said Ross Benes analyst.
Benes added that “Unless he found more franchises who resonated broadly, in the end he would struggle to remain in front of competitors who pursued his crown.
The executive Netflix has also made it clear that the company will become harder in sharing logins and passwords, which allows many people not to pay to access the content platform.
It’s fun that our members like the Netflix movie and TV shows that they really want to share more broadly,” Director of Chengyi Long’s product innovation said Monday in a blog post.
But the current distribution of accounts between households damages our long -term capabilities to invest and improve our services.”
Long said that the “added home” feature that Netflix in March began to test in Chile, Costa Rika, and Peru to be expanded to Argentina, the Republic of Dominica, Honduras, El Salvador, and Guatemala.
In an effort to draw new customers, Netflix will work with Microsoft to launch a cheaper subscription plan that includes advertising.
Netflix chose to develop a cheap offer after the first disappointing quarter where he lost customers for the first time in a decade, and after years of resistance to the idea of carrying out advertisements.
The subscription supported by advertising will be an additional of the three available options, the cheapest is $ 10 per month in the United States.