Netflix Loss 2 Lakh Subscribers
Netflix got wobbled by the loss of 2 lakh subscribers which resulted in the worst loss in decades. Well, it is explainable in the era of inflation and war between two countries Russia-Ukraine. Now the online streaming giant is ready to offer cheaper plans soon with ads to bring back its subscribers.
Q1- Not In Favour Of The Company
Netflix reported the loss of its 2 lakh subscribers in the first quarter, and the company is facing its worst loss in decades. Majorly the loss is fuelled by the ascending growth of competitors and the war between Russia-Ukraine. Plus company had also announced earlier to suspend its services in Russia to protest against its invasion of Ukraine.
Online streaming giants’ plan to add 2 million subscribers in the first quarter fell apart, moreover, it has predicted the loss of 2 million users between the period of April-June. The company is facing such hardships even after the release of such big banner series and movies like “Stranger Things, Better Call Saul, Ozark, and The Grey Man.”
Netflix profit books showed a huge rise in the starting months of the pandemic when the majority were caged in their houses due to COVID lockdown. However, in the trading session on Tuesday company’s stock descended by 26 per cent resulting in decreased stock market value by nearly half.
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How Netflix Is Improvising To Get Back Its Users?
Reuters quoted Netflix CEO Reed Hastings as saying, “Those who have followed Netflix know that I’ve been against the complexity of advertising, and a big fan of the simplicity of subscription. But, as much as I’m a fan of that, I’m a bigger fan of consumer choice.”
There are two ways in which the company is focusing on recovering losses:
- Netflix will soon offer cheaper ads supported subscription plans to recover the lost users.
- The company is looking forward to finding a suitable way to generate additional revenue from the users who share their accounts with friends and family outside their homes.
