Netflix shares have fallen off a cliff today as the company has just reported a loss of 200,000 subscribers, marking the first time Netflix has seen a drop in over a decade. The last time the streaming giant reported a loss of subcribers was in October 2011, and Netflix is forecasting a loss of 2 million more subscribers next quarter.
This information was recently shared by industry analyst Benji-Sales, who revealed that Netlfix's share prices have dropped by almost 25 per cent after the loss of subscribers was revealed. According to a letter to its shareholders (thanks The Verge), the loss of subscribers is "tracking in-line with our expectations" after Netflix announced an increase in the price of subscription back in January. Netflix also claims that Covid-19 "clouded the picture" in regards to its significant performance increase in 2020.
Netflix's announcement comes shorlty after the company announced it has started rolling out a test that would start charging subscribers for sharing their passwords with other people outside of their household. The test is currently ongoing in Chile, Costa Rica, and Peru as Netflix attempts to increase profits and subscribers by cracking down on password sharing. Between this and the price increase, it's easy to see why so many people have decided that having a Netflix subscription isn't worth the hassle.
Netflix currently has around 222 million subscribers at the moment, but the company is apparently expecting to lose a lot more. Other subscriptions services such as Amazon Prime, Disney Plus, HBO Max etc. have also likely contributed to Netflix's loss of subscribers, with Netflix users bailing for cheaper services with similarly high-budget productions, although Netflix is hardly going to admit to this.
Netflix will likely be hoping that its premium shows will keep people around, including The Witcher TV series which has just cast a few characters for Season 3. The actors playing Gallatin, Milva, Prince Radovid, and Mistle were all revealed recently with Robbie Amell, Meng'er Zhang, Hugh Skinner, and Christelle Elwin playing each character respectively.