Streaming service Netflix loses a large number of subscribers for the first time in ten years


Shares of Netflix fell sharply today as the company just reported the loss of 200,000 subscribers, the first drop in Netflix shares in more than a decade. The streaming giant last reported a loss of subscribers in October 2011, and Netflix expects to lose another 2 million subscribers next quarter.

This information was recently shared by industry analyst Benji-Sales, who reported that Netlfix’s share price fell by almost 25 percent after the loss of subscribers became known. The loss of subscribers is “in line with our expectations” after Netflix announced a subscription price hike back in January, according to a letter to shareholders. Netflix also claims that Covid-19 has “clouded the picture” for a significant uptick in 2020.

Netflix’s announcement came shortly after the company announced it was starting a trial that would see subscribers charged for transferring subscriptions to people outside their household. The test is currently underway in Chile, Costa Rica and Peru as Netflix attempts to increase revenue and subscriber numbers by cracking down on subscription transfers. Given that and the price increase, it’s easy to see why so many people have decided that a Netflix subscription isn’t worth the hassle.

Netflix currently has around 222 million subscribers, but the company apparently expects to lose a lot more. Other subscription services such as Amazon Prime, Disney Plus, HBO Max, etc. have also likely contributed to the loss of Netflix subscribers as Netflix users switch to cheaper services with the same high budget, although Netflix is ​​unlikely to admit this. .

Netflix is ​​likely hoping its premium shows will keep people going, including The Witcher, which just finished casting several characters for its third season.

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