Netflix registered its first subscriptions slump in a decade, with the streaming giant registering 200,000 losses globally in Q1 2022. The company is also readying itself for a subscriber deficit of two million by end of Q2 2022.
“Our revenue growth has slowed considerably,” Netflix said in a letter to shareholders. “Covid clouded the picture by significantly increasing our growth in 2020, leading us to believe that most of our slowing growth in 2021 was due to the Covid pull forward.”
Netflix saw Q1 out with approximately 222 million subscribers, meaning that it is still the largest streaming platform.
It is thought that the losses may have been instigated by Netflix’s first price hike in the US two years, with the platform’s basic plan up to $9.99 per month from $8.99; its standard tier up to $15.49 per month from $13.99; and its 4K tier up to $19.99 per month from $17.99.
Another key factor in the drop in subscriptions is the increasingly competitive nature of the streaming marketplace, with more and more services launching, such as Disney Plus, with some offering cheaper rates.
“Our plan is to reaccelerate our viewing and revenue growth by continuing to improve all aspects of Netflix — in particular the quality of our programming and recommendations, which is what our members value most,” Netflix stated in its earnings letter. “On the content side, we’re doubling down on story development and creative excellence.”
The company also highlighted opportunities outside of the US, as it pledges to expand its international reach over the long term.
Image: Netflix series 13 Reasons Why