Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Netflix shares plunge as subscribers fall for first time in a decade

Netflix shares plunge as subscribers fall for first time in a decade

The news comes as more than 1.5 million Brits cancelled a subscription in the first quarter of 2022 to deal with the cost of living crisis.

Streaming titan Netflix lost subscribers in the first three months of this year after years of explosive growth, sending the company's shares plummeting.

After losing 200,000 subscribers in the first quarter, Netflix indicated in its financial results that it could shed a further two million members in the second quarter of this year.

The drop represents a huge miss for Netflix, which originally estimated it would add 2.5 million subscribers in the first quarter.

The company lost 700,000 customers when it suspended its service in Russia last month, following the country's invasion of neighbouring Ukraine.

Netflix last reported losing customers in October 2011. The Silicon Valley giant's stock price plunged 23% in after-market trading.

It placed some of the blame for the drop in subscribers on family members sharing the same account, something that the company has recently started to crack down on.

Netflix also pointed to the brewing conflict between giants such as Amazon, Disney, and Apple - dubbed the "streaming wars" - as another reason for a hit to its subscriber numbers.


"The large number of households sharing accounts - combined with competition, is creating revenue growth headwinds. The big COVID boost to streaming obscured the picture until recently," Netflix said in a statement.

First-quarter revenue for the company increased 10% to $7.87bn, missing Wall Street's forecasts of $7.93bn.

There have been growing concerns for some time that after more than a decade of meteoric growth, Netflix would eventually start to see a drop off in subscribers as its competitors strengthened their offering.

Last year, streaming services such as Netflix spent $50bn on new content in an effort to win or retain subscribers, according to researcher Ampere Analysis.

But the news is also likely to spook tech companies outside of the streaming world.

Analysts have warned that any indication of a slowdown in the rate at which consumers are subscribing to services could spell trouble for the wider industry - and hit companies like Spotify and HelloFresh as the cost of living crisis bites and households scale back on expenses.

A new report released on Tuesday found that the number of people subscribing to at least one video streaming service in the UK had fallen, with more than 1.5 million people cancelling memberships.

Market research firm Kantar said that more than half a million cancellations were due to the cost of living crisis, as households deprioritise streaming services as they try to make ends meet.

A total of 1.51 million cancellations happened in the first quarter of 2022.

Roughly 58% of Brits now have at least one paid streaming service, such as Netflix, Amazon Prime Video or Disney+.

During the COVID-19 pandemic and the government enforced lockdowns, there was a surge in subscriptions to platforms, with more people stuck at home.

However, the report has found that the proportion of consumers planning to cancel subscriptions due to tightening budgets has risen to its highest level ever, from 29% to 38%, in the last three months of 2021.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Elon Musk Unveils Grokipedia: An AI-Driven Alternative to Wikipedia
Russia’s President Putin Declares Burevestnik Nuclear Cruise Missile Ready for Deployment
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
White House Announces No Imminent Summit Between Trump and Putin
China Presses Netherlands to “properly” Resolve the Nexperia Seizure as Supply Chain Risks Grow
Merz Attacks Migrants, Sparks Uproar, and Refuses to Apologize: “Ask Your Daughters”
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Mayor in western Germany in intensive care after stabbing
Australian government pays Deloitte nearly half a million dollars for a report built on fabricated quotes, fake citations, and AI-generated nonsense.
BYD’s UK Sales Soar Nearly Nine-Fold, Making Britain Its Biggest Market Outside China
Latvia to Bar Tourist and Occasional Buses to Russia and Belarus Until 2026
Wave of Complaints Against Apple Over iPhone 17 Pro’s Scratch Sensitivity
Munich Airport Reopens After Second Drone Shutdown
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
×