Netflix stocks plunged 25% today, the second time this year NFLX stocks took a massive hit. The streaming giant announced a loss of nearly 200,000 subscribers in Q1 2022, contrary to the expected addition of 2.5 million subscribers. Netflix added that it was expecting to lose another 2 million subscribers in Q2 2022.
In a message to investors, Netflix said that their growth had slowed since the burst of growth during the pandemic, adding that it led to the belief that most of the slowing growth in 20221 was “due to the Covid pull forward.”
However, Netflix has been facing issues with competition as more streaming services are introduced, including channels like Disney+. Netflix also claimed that password sharing was becoming an issue, with an estimated “100 million additional households” involved in sharing passwords.
Related: If you haven’t played this video game yet, you’re strongly missing out
Netflix also blamed “macro factors” affecting other corporations such as “increasing inflation, geopolitical events such as Russia’s invasion of Ukraine, and some continued disruption from COVID are likely having an impact as well.” Netflix’s pulling out of Russia set them down 700,000 subscribers.
What’s next?
The company stated that “our plan is to reaccelerate our viewing and revenue growth by continuing to improve all aspects of Netflix–particularly the quality of our programming and recommendations, which is what our members value most.”
Netflix will also be “doubling down on story development and creative excellence” as well as adding the “double thumbs up tool” to allow members to “better express what they truly love versus simply like.”
Related: Is the Logitech G502 Hero Mouse the best gaming mouse in the market?
Netflix is also considering adding a lower-priced subscription tier with ads, similar to that of HBO Max and Disney+. CEO Reed Hastings said “those who have followed Netflix know that I’ve been against the complexity of advertising, and a big fan of the simplicity of subscription. But, as much as I’m a fan of that, I’m a bigger fan of consumer choice.”
Let us know what you think in the comments below. Remember to keep all discussions polite and respectful.
Zainah Yousef is a writer for The DZSH Group. She is also the author of “The Fallen Age Saga.” Her areas of focus are on psychology, politics, public security, and war. She is also a frequent contributor in articles on video games and entertainment news.
