Streaming platform Netflix has hinted at its plan to stop password-sharing for subscribers. This move, BizWatch Nigeria, understands will be a move designed to add up new members following a sharp fall in the number of subscribers.
While two million subscribers are likely to quit their commitment to Netflix in the next three months, the streaming platform disclosed that the number of households using its service fell by 200,000 between January and March 2022, as it faced stiff competition from rivals.
“Our revenue growth has slowed considerably.
“Our relatively high household penetration – when including the large number of households sharing accounts – combined with competition, is creating revenue growth headwinds,” Netflix told its shareholders.
Netflix reveals factors behind the decline in subscribers’ base
“First, it’s increasingly clear that the pace of growth into our underlying addressable market (broadband homes) is partly dependent on factors we don’t directly control, like the uptake of connected TVs (since the majority of our viewing is on TVs), the adoption of on-demand entertainment, and data costs.
“The company said there are more than 100 million households that use its service and don’t pay for it, on top of its 221.6 million subscribers.
“The company said competition for viewing with linear TV as well as YouTube, Amazon, and Hulu has been robust for the last 15 years.
“Fourth, macro factors, including sluggish economic growth, 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 explained.
