Recently the news of the streaming giant Netflix recording a 200k subscribers’ loss in the first quarter of 2022 hit the public, and it caused a storm of opinions and forecasts for the future of the company.
Along with the drop in subscribers, Netflix’s stock fell 35%, revealing the uneasiness of shareholders regarding the halt in growth. The company justified the issue stating that the root of the problem was that users shared their password with non-paying viewers.
It was hinted at a possible strategy to minimize the harm caused by free riders through new paid sharing plans, currently implemented in Chile, Peru and Costa Rica.
It’s no secret that the market for streaming in the latest years has been pretty much saturated: Prime Video, Disney, Apple, Hulu are among the biggest; it is now harder for Netflix to penetrate new markets due to their presence, and many users may choose to switch no newer platforms or those that satisfy their needs best.
It’s relevant to remember that Netflix also had to cut the service in Russia because of the war against Ukraine: this factor contributed to the negative figure.
However, Netflix still counts 221.64 million subscribers, a figure that is predicted to grow in the long run.