Netflix lost subscribers for the first time in a decade last quarter

Illustration by Alex Castro / The Verge

In the first quarter of 2022, the struggle to boost its subscriber count took a turn for the worse. The company reported a loss of 200,000 subscribers in the fourth quarter, and is expecting even bigger losses to come. In the second quarter, it could lose up to 2 million subscribers.

In its letter to shareholders, the company acknowledged that its revenue growth has slowed considerably.

The first monthly increase in two years was announced in January. Today's report contains the results of the price change, which resulted in the loss of 600,000 customers in the US and Canada.

As it seeks to maximize revenue from the users it already has, the streaming giant has recently indicated it will tighten the screws on customers who share passwords and login info. As a result of the situation, it is harder to grow memberships in many markets.

It's a reflection of a more competitive streaming landscape that the number of people who sign up for the service is slowing. Disney Plus is going to offer a lower-cost tier later this year. In recent years, the growth of the company has become more incremental. The company stopped service in Russia after the invasion of Ukraine. According to today's earnings report, the company lost over one million subscribers as a result.

Our plan is to reaccelrate our viewing and revenue growth by continuing to improve our programming and recommendations, which is what our members value the most.

The company has expanded into gaming as it explores new ways to bring in more customers. The partnership with Exploding Kittens will produce both a mobile game and animated series.

The company never had high hopes for new subscribers this quarter. The company gained 4 million subscribers in the same quarter a year ago. Even with the release of high-profile original films Red Notice and Don't Look Up, it provided that outlook in January after coming up short of its Q4 growth estimates. Today's results are worse than predicted and the stock is tumbling again.

The same big-Hollywood entertainment was present in this quarter. The return of Bridgerton and other fan favorites was the main focus.