20 Apr 2022
Netflix Plummets after Losing 200,000 Users for the First Time in 10 Years
The Index Today
Streaming Giant Netflix Inc. is set to implement new rules and policies following the loss of 200,000 users in the first quarter for the first time since 2011.
According to Bloomberg News, Netflix plans to implement an advertising-based alternative for its customers over the course of the next two years, while also targeting those who share their passwords. Additionally, the streaming giant is preparing to reduce funding on movies and TV shows in order to compensate for the losses incurred following the exit of 200,000 users.
The company is also anticipating another loss of 2 million users during the ongoing second quarter which will prove to be a tremendous blow for Netflix. Until its present tumble, the streaming leader had been adding 25 million users to its customer base every year.
Calling the incident “shocking”, MoffettNathanson LLC’s Analyst Michael Nathanson said, “Everything they’ve tried to convince me of over the last five years was given up in one quarter. It’s such an about face.”
However, Netflix’s present predicament also spells a possible doom for its competitors even as an increasing number of people switch from cable TV to streaming services, reported Bloomberg News.