Netflix, the global giant video-on-demand streaming behemoth, has published its first-quarter report surprising the market when it announced a 200 000 decline in subscribers, missing its intended mark of adding 2.5 million new subscribers by 31 March, as it currently sits on 221.64 million global subscribers.
This is Netflix’s first loss in subscribers since October 2011.
The streaming service subscriber decline follows a growth-reversal report published by the global giant in the first quarter of 2022. The report highlighted its plans to add an advertising-supported option within the next two years and enforce strict password-sharing rules, which they highlighted as key to increasing subscription numbers.
In response to the current decline, Netflix also estimated a further loss in subscribers. The streaming service has indicated that it anticipates a loss of 2 million more subscribers in the second quarter of 2022.
In Netflix’s quarterly report to shareholders, the platform blamed password-sharing, implying that an excess of 100 million households accessed its content through password-sharing.
The decline has been said to also reflect the significant competition in the market. In South Africa, Netflix, Showmax, Amazon Prime Video and Apple TV+, already in competition, will also share the market from 18 May with Disney+ streamer when it launches, giving video consumers even more choice.
“Traditional tv market share together with other streaming platforms have been resilient competition over the past 15 years. At Netflix, we plan to increase our subscriber numbers by improving the quality of our programming and recommendations, which is what our members value most.”