People leaving their homes may have benefited from the COVID-19 Pandemic, but it is not the reason for their troubles. In the first quarter of 2022, the company lost 200,000 subscribers, a sharp contrast to the millions of additions per quarter over the past year. There were multiple problems hiding under the surface, according to the streaming giant.
Competition from online services like Disney+ and Prime Video was pointed out by the company. The firm blamed limited room to expand in many countries due to both technology factors outside of its control and the abundance of account. There are more than 200 million paying households and 100 million sharing them.
The decision to stop service in Russia helped swing the company from growth to a loss. It would have added half a million customers, but lost half a million after dropping its Russian base. Growth was soft across all regions.
There are multiple efforts to turn things around. It hoped to improve the quality of its shows, profit from sharing, and produce more content to suit audiences outside the US, where growth was stronger.
In the short term, these results might not work out. In the ongoing second quarter, the company expects either mild growth or a loss, with no more than 1.5 million new members. If it is going to fend off rivals, it will need to improve its basics, and that is something that mobile games and minor feature additions will not be able to do.
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