The streaming giant released itsfirst - one-quarter earnings for 2022to shareholder on Tuesday , discover thatthe number of users of the cyclosis service fell by 200,000 in the first three calendar month of 2022 . They could lose a further 2 million ratifier in the next quarter of 2022 , according to their prognosis .
The party boss at Netflix believe there are a figure of factors behind this movement . Firstly , the boom of streaming seen during the COVID-19 pandemic may have hazed their route ahead , leading them to overestimate their growth in 2021 and 2022 . Secondly , they are faced with mounting rivalry from other big streaming weapons platform such as Disney Plus , YouTube , Amazon Prime Video , etc .
third , they are progressively aware that parole sharing may be wipe out into their increment .
By their count , Netflix has around 222 million paying menage , but these accounts are also being divvy up with over 100 million extra house , 30 million of which are in the US and Canada .
“ We ’re lick on how to monetise sharing , ” Reed Hastings , co - founder and co - chief executive officer of Netflix , said in a video of theQ1 2022 Earnings Interview . “You know , we ’ve been recall about that for a couple old age . But you experience , when we were develop fast , it was n’t mellow priority to work on . And now we ’re working extremely heavily on it . Remember , these are over 100 million households that already are choosing to reckon Netflix . They love the service . We ’ve just start ta get paid in some point for them . ”
Netflix has flirted with this idea of monetise account statement sharing before . In March 2022 , theyannounced plansto roll out a trial in Chile , Costa Rica , and Peru that will bill account proprietor for share passwords with people who do n’t last in the same household .
Technically , Netflix already prohibits password sharing beyond undivided households . In their term and conditions , it reads : “ The Netflix service and any contentedness get at through the service are for your personal and non - commercial use only and may not be shared with individuals beyond your household . ” However , these rules are not tightly impose
Just a yoke of years ago , Netflix appeared unbothered by password sharing , debate that it was part of what made online cyclosis services so attractive .
" We love the great unwashed sharing Netflix , " Hastingstold the crowdat CES 2016 . " That ’s a positive affair , not a negative affair . "
Now their unfettered ontogeny seem to have come to a ending , those freeloading family could make all the difference .
