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Netflix loses 2 lakh paid subscribers in Q1, shares tank 20%

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San Francisco, April 20 (IANS) Streaming giant Netflix saw its stock tumbling by 20 per cent after it reported a loss of 2 lakh paid subscribers in the first quarter of 2022 — its first subscriber loss in over a decade.

Moreover, Netflix forecasts a global paid subscriber loss of 20 lakh for the second quarter (Q2) of 2022.

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The decline has brought Netflix’s subscriber base to 221.6 million, down from 221.8 million in the previous quarter.

“The suspension of our service in Russia and winding-down of all Russian paid memberships resulted in a 7 lakh impact on paid net adds; excluding this impact, paid net additions totalled 5 lakh,” the company said in a statement late on Tuesday.

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The company told its shareholders that it expected to add 2.5 million net subscribers during the first quarter, compared with 4 million in the same quarter a year ago.

The main challenge for membership growth, said Netflix, is continued soft acquisition across all regions.

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Netflix informed that in addition to its 222 million paying households, it estimates that the streaming service is being shared with over 100 million additional households.

“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 – an issue that was obscured by our Covid growth,” the company noted.

Netflix said it is making good progress in APAC “where we are seeing nice growth in a variety of markets including Japan, India, Philippines, Thailand and Taiwan”.

Its revenue in the first quarter reached $7.78 billion. The net cash generated by operating activities in Q1 was $923 million.

–IANS

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