Netflix blames account sharing for first subscriber loss in a decade

AppleInsider · April 19, 2022 11:02PM

A quarterly report delivered to investors on Tuesday revealed that the streaming service had lost 200,000 paid subscribers, citing COVID concerns and other factors.

Credit: David Balev/Unsplash

Netflix disclosed its Q1 2022 results in a shareholder update Tuesday morning, remarking that its platform's growth in revenue has "slowed considerably."

Its $7.868 billion in revenue -- representing a mere 9.8% growth over the last quarter -- marked the lowest quarter-over-quarter increase in at least a year.

More notably, the report revealed that the number of Netflix's global paid subscriber count has shrunk by 200,000 in Q1 of 2022, from 221.84 million to 221.64 million, the first time the figure has dropped in a decade.

Netflix executives attributed the subscriber loss to accounts "being shared with over 100 [million] additional households," and the COVID-19 pandemic for obscuring market trends.

Moreover, Netflix told its investors that "robust" competition from other streaming services, such as Disney+, Amazon Prime Video, Hulu, and YouTube, has emerged "over the last three years."

It is likely that other factors may also contribute to the subscriber loss for Netflix. In January 2022, the streaming service uniformly raised its prices for all plans in the United States and Canada.

More recently in March 2022, Netflix announced new measures to discourage account sharing among its subscribers.

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mcdave · April 19, 2022 11:33PM

Actually, yes, this is good news. Here’s a solution, just provide the streaming via an AppleTV channel & let Apple handle unique ID validation & payment.

xed · April 19, 2022 11:52PM

The drop is because their content just doesn’t cut it as well in an increasing competitive streaming market, not because people are now just learning they can share accounts.

Personally, Netflix has dropped in usage in my household considerably in the last couple years as others—especially Apple TV+—has increased in usage. Even Paramount+ and Peacock get my household’s eyeballs a lot more than Netflix.

I wish Netflix’s blockbuster-wannabe, comedy-action films with big stars, like Red Notice, we’re better, but they aren’t even great as bubblegum movies.

twokatmew · April 19, 2022 11:57PM

I’d been a Netflix subscriber since it was first introduced on the very first Roku box. But I canceled my account a couple months ago and haven’t missed it. They’ve been losing content to other streaming channels, and they keep raising prices. My new policy is signing up for a month or so if I want to binge watch a show. That’s how I keep my streaming costs down. Not by sharing passwords/accounts.

waveparticle · April 20, 2022 12:15AM

Netflix account sharing has been going on since its beginning. This is an inept management.

japhey · April 20, 2022 12:18AM

Lol, I remember Netflix saying they didn’t expect any meaningful impact to their market share when Apple and Disney released their + services a couple Novembers back. Now, instead of admitting they were wrong, they have to make shit up? The quantity over quality approach to justify price increases isn’t going to cut it anymore with so many other options available these days. I see their numbers continuing to slide until they get that through their heads. As soon as Stranger Things 4 is binged next month, Netflix will be gone in my house as well.

bobolicious · April 20, 2022 12:21AM

- has the price increased dramatically in a very short time ?
- should one need (to pay for) 4 'channels' simply to access 4K image quality ?
- would offering 4K 'channel' options @ 25% of the current forced bundle cost increase subscription numbers ?
- has content become less varied / clever ?

I find myself searching longer now to find compelling content, and if I didn't have an (as defined) 'household' sharer I would have dropped the subscription some time ago, just revisiting the question last week. Indeed I find kanopy (free) reminds me more of the early Netflix when documentaries and films from indy distributors such as mongrel seemed more commonly available.

Presumably COVID production limitations and increased consumption may have been a factors ?

edited April 2022

notsomuch · April 20, 2022 12:24AM

Lower you price, do not expect people to stay when you increase the price.

Price / value is not working so we dropped out. Frugal? No not really you just gave us a reason to leave.

japhey · April 20, 2022 12:29AM

Xed said:

The drop is because their content just doesn’t cut it as well in an increasing competitive streaming market, not because people are now just learning they can share accounts.

Personally, Netflix has dropped in usage in my household considerably in the last couple years as others—especially Apple TV+—has increased in usage. Even Paramount+ and Peacock get my household’s eyeballs a lot more than Netflix.

I wish Netflix’s blockbuster-wannabe, comedy-action films with big stars, like Red Notice, we’re better, but they aren’t even great as bubblegum movies.

Agreed. Paramount+ has quietly become a really good service. Both it and Peacock are watched a lot more than Netflix in our house, also. And films like Red Notice and Don’t Look Up consistently fail to live up to the hype they get. How the hell that movie ever got nominated for an Academy Award I’ll never understand.

kiehtan · April 20, 2022 12:33AM

$20 for 4k....this just might be the problem

sconosciuto · April 20, 2022 12:55AM

I wonder how many people are like us, we periodically (ev. 6-8 months?) review our subscriptions. Sometimes we cut one or even two, occasionally pick up a new one. Apple easily makes the cut at $5/month and then something incredible like Severance comes along... $20/month is too much for Netflix.

robin huber · April 20, 2022 1:51AM

We started as DVD people because the best/ newest content was on them. Then Netflix separated the DVD business from streaming in an effort to kill it. So much blowback that they offered a combo subscription which we had for a few years. Over that time the DVD selection degraded to the point that there was nothing worth watching. Just cancelled our combo subscription to save a few bucks. So long, DVDs. We preferred them because our Spectrum service is shitty but we could always depend on a Blueray for quality image. Toward the end though we got a number of damaged discs as Netflix was doing its best to wean us off them.

daalseth · April 20, 2022 1:55AM

Japhey said:

Lol, I remember Netflix saying they didn’t expect any meaningful impact to their market share when Apple and Disney released their + services a couple Novembers back. Now, instead of admitting they were wrong, they have to make shit up? The quantity over quality approach to justify price increases isn’t going to cut it anymore with so many other options available these days. I see their numbers continuing to slide until they get that through their heads. As soon as Stranger Things 4 is binged next month, Netflix will be gone in my house as well.

I keep thinking I’ve heard this song and dance before.
Oh yeah, Netflix is repeating the same script Research In Motion tried after the iPhone came out.
We’ll see how the “customers will never go for the other guy’s product, we’re the best” model works for them now that a dozen other guys are out there with a better and cheaper product.

madbum · April 20, 2022 2:33AM

There isn’t a single show on Netflix like Severance, For all Mankind on Apple TV plus

with NFL Sunday ticket now, Apple TV will rise

edited April 2022

ravnorodom · April 20, 2022 2:36AM

Here you go Netflix. Blame it on subscription sharing. But you are right about competitive streaming services.

japhey · April 20, 2022 2:59AM

Netflix shares plunged 26% in after hours trading before rebounding slightly. Ouch. All pandemic gains lost in 1 afternoon! I can’t wait to see what tomorrow brings.

edited April 2022

noelos · April 20, 2022 3:04AM

I unsubscribed too. Getting way to expensive and all I found myself doing when I fired up the app was scrolling endless crap to try and find a show I might like. Highlights in last few years: Bojack Horseman & Squid Game (and Stranger Things watchable). I'm sure there are great shows on there - but I can't spend half my evening trying to find them. This is from the perspective of Australia where Netflix has the rights to fewer shows than elsewhere - yet they charge just as much (or more) than USA/UK where they have better content.

Contrast with Apple/Disney, where you can be pretty sure whatever you dip into won't be complete dross. And Prime at least tends to put their best shows where they're easy to find.

diz_geek · April 20, 2022 3:13AM

After the ever increasing prices, combined with less compelling content, I ditched Netflix about 2 years ago. I restarted my account last year when I switched to T-Mobile, but that was only because it was included in my plan. I’ve watched a few things here and there, but generally find myself watching other services first.

chadbag · April 20, 2022 3:44AM

Blaming sharing is laughable. Sharing has been going on since forever.

We have it because of T-mobile. Wouldn’t have it otherwise. I never find anything I am interested on it. My kids watch the anime they show so it is worth it for that I guess.

humbug1873 · April 20, 2022 4:26AM

mcdave said:

Actually, yes, this is good news. Here’s a solution, just provide the streaming via an AppleTV channel & let Apple handle unique ID validation & payment.

Oh please don't. The Netflix App on Apple TV is about the best streaming app there is. At this point it's the major reason I'm even still watching Netflix as often as I do.

On the other Hand the AppleTV+ App on AppleTV is such an absymal piece of garbage, trying to upsell me on every step I go, adding channels I explicitly I don't want to see and makes a great effort to actually prevent me from seeing, what I want to see. Just because of that I'm this close to cancelling my AppleTV+ subscription. Even though, when I manage to locate the show I want to see in the labyrinth that it the AppleTV+ APP the shows are great. I just can't be bothered any more.

premi · April 20, 2022 4:36AM

Became too woke and political. Also HBO Max has been my go to for sometime now.

Netflix blames account sharing for first subscriber loss in a decade

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