- Netflix stated on Tuesday that it misplaced 200,000 paid subscribers in Q1, a primary in over a decade.
- It partly blamed the loss on password sharing.
- The streaming firm has already began addressing the difficulty with exams in Latin America.
first subscriber loss in over a decade on Tuesday in its Q1 earnings report, because it misplaced 200,000 subscribers.reported its
The firm blamed a number of elements, certainly one of which was password sharing.
Netflix has 222 million paid subscribers worldwide. It estimated that an extra 100 million households are utilizing the service by way of a password shared with them, together with 30 million in North America.
The firm stated in its shareholder letter that it could focus, amongst different issues, on find out how to monetize account sharing.
Netflix has already began to deal with the difficulty.
Last month, it began testing a brand new function in three Latin American areas — Chile, Costa Rica, and Peru — during which subscribers would be capable of add as much as two “extra member” accounts for a small further charge, on prime of their month-to-month subscription.
“There’s a broad range of engagement when it comes to sharing households from high to occasional viewing,” the corporate stated in its earnings letter. “So while we won’t be able to monetize all of it right now, we believe it’s a large short- to mid-term opportunity.”
It added: “As we work to monetize sharing, growth in [average revenue per membership], revenue and viewing will become more important indicators of our success than membership growth.”
In its letter, Netflix projected that it might lose 2 million subscribers in Q2. Its inventory plummeted 21% in after-hours buying and selling.