Netflix’s domination in the streaming world is coming to an end. The company is experiencing a massive dip in subscribers base globally.
The streamer is faced with serious competition from its rivals such as Amazon Prime, Apple Plus TV, Disney+ and its sister company Hulu.
According to the news reports, the company reported a loss of 200,000 subscribers globally compared to Q4 and its forecasting even bigger losses to come. Netflix estimates it could lose up to two million subscribers in the second quarter.
Netflix now estimates that as many as 100 million households are using the service via shared passwords.
“It’s harder to grow membership in many markets,” as a result of the situation, Netflix said
“Our revenue growth has slowed considerably,” Netflix acknowledged in its letter to shareholders.
“Covid clouded the picture by significantly increasing our growth in 2020, leading us to believe that most of our slowing growth in 2021 was due to the Covid pull forward.” Netflix ended the quarter with roughly 222 million subscribers, so it’s still the largest streamer — but it’s facing a slew of challenges.
The company came out to say they have a plan in place to increase it subscriber base and revenue. They promised to start with a crackdown on password sharing by its users.
“Our plan is to reaccelerate our viewing and revenue growth by continuing to improve all aspects of Netflix — in particular, the quality of our programming and recommendations, which is what our members value most,” the company said.