Today, Netflix has announced its Q1 2022 financial report and for the first time in a decade, the company is losing subscribers. The report also suggests that it will continue to dwindle down and this could be due to account sharing.
According to the financial report, Netflix failed to hit 2.5 million subscribers in Q1 2022. The report said in just the US and Canada alone, 600,000 subscribers were lost due to the increased monthly payment but it was expected. Meanwhile, Netflix also suspended its service in Russia which cost them 700,000 subscribers. But even if the company didn't, it would still be below the goal.
Besides the increased monthly payment and boycotting Russia, another factor is the aforementioned password sharing between friends and family. It was estimated that a total of 222 million subscribers are sharing their accounts with 100 million households globally. Back in March 2022, Netflix announced that it was testing some password-sharing methods with a fee. The beta first started in Chile, Costa Rica and Peru to understand the feature.
Going forward, Netflix is anticipating losing two more million subscribers. To combat this problem, Netflix co-CEO Reed Hastings that Netflix is also looking into a more affordable, ad-supported plan. For your information, the lowest monthly fee in Malaysia is RM17 but it's for mobile and tablet usage only (one stream at a time), whereas the Premium package can go up to RM55 with 4K HDR content on any devices (up to four streams at a time).
Are you still sharing your Netlix account with your friends and family? I think it's safe to say that almost all Malaysians do. Stay tuned for more trending tech news at TechNave.com.
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