Netflix streaming platform informed about the decline of the subscribers in the first quarter due to withdrawal from Russia and growing saturation of the US market. This came as a surprise to Wall Street analysts, who expected a slow but positive increase in subscribers in the first three months of 2022.
According to the report, the company’s revenue was $7.87 billion against the expected $7.95 billion. The platform also lost 200,000 subscribers instead of gaining 2.51 million. After the publication of the report, the company’s shares fell by 20%.
Last year, Netflix subscribers grew by about 4 million over the same period. According to the company, competition is hampered by competition, as well as the fact that households share accounts on the platform. However, so far the surge in demand for streaming through COVID-19 has overshadowed the picture.
“Key to our success has been our ability to create amazing entertainment from all around the world, present it in highly personalized ways, and win more viewing than our competitors,” reports the company.
Following the pandemic surge, Netflix is struggling to slow subscriber growth. Now this trend has intensified due to the exit from the Russian market. The suspension of work in Russia led to the removal of 700,000 paid subscribers in this quarter.
The number of subscribers in the US and Canada also decreased – here the company lost 600,000 users. Earlier this year, Netflix raised prices for viewers from North America.
The company has also seen declining popularity in Europe, the Middle East, Africa, and North America. Nevertheless, Netflix still has prospects for international growth. The number of subscribers to the platform increased by 1.1 million in the Asia-Pacific segment.