According to subscriber numbers the company said during today's earnings results, they lost subscribers for the first time in more than a decade in Q1 2022. The losses are set to continue as more than 200,000 subscribers have left.
In the first quarter of 2022, the company was expecting to add 2.5 million subscribers. The suspension of its business in Russia cost it 700,000 subscribers, and without that loss, it would have added 500,000 paid global users.
In the United States and Canada, the company lost 600,000 customers. The subscriber loss was anticipated and in line with expectations.
In a letter to shareholders, the company blamed a large number of households sharing accounts and competition for the decrease in revenue. 100 million households are not being monetized and are sharing with 222 million paying households.
According to the company, it plans to implement more effective monetization of multi-household sharing, which suggests that it will soon implement measures to prevent account sharing. Those who share their accounts with people outside of their homes will be getting an extra payment.
Customers can pay an extra fee to share their accounts with two other people outside of their household in the current test markets of Costa Rica, Chile, and Peru. When the test was launched, the company said it was working to understand the utility of the two features before making changes in other countries.
Until now, the service has ignored password sharing, despite the fact that it has always included wording in its terms and services that prevents account usage across multiple households. A 4K streaming plan is priced at $20 per month.
The only streaming service that charges by streaming quality is Netflix. In the U.S., the Basic no-HD plan that allows for streaming on a single device, $15.49 for a Standard HD plan that allows for two people to watch at the same time, and $19.99 for a Premium plan with Ultra HD streaming and support for four are all included
In the second quarter of 2022, the company is expecting to lose two million subscribers.
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