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NETFLIX SHARES LOST a quarter of their value today after the company revealed its ranks of subscribers shrank in the first quarter of this year.
It is the first time in a decade that the leading streaming television service had lost subscribers. The company blamed the quarter-over-quarter erosion to suspension of its service in Russia due to Moscow’s invasion of Ukraine.
Netflix ended the first quarter of this year with 221.6 million subscribers, slightly less than the final quarter of last year.
The Silicon Valley tech firm reported a net income of $1.6 billion in the recently ended quarter, compared to $1.7 billion in the same period a year earlier. Netflix shares were down some 25% to $262 in after-market trades that followed release of the earnings figures.
“We’re not growing revenue as fast as we’d like,” Netflix said in an earnings letter.
“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 believes that factors hampering its growth include the time it is taking for homes to get access to affordable broadband internet service and smart televisions, along with subscribers sharing their accounts with people not living in their homes.
The streaming giant estimated that while it has nearly 222 million households paying for its service, accounts are shared with more than 100 million other households not paying the television streaming service.
“Account sharing as a percentage of our paying membership hasn’t changed much over the years, but, coupled with the first factor, means it’s harder to grow membership in many markets,” Netflix said.
Netflix last year began testing ways to make money from people sharing accounts, such as by adding a feature that lets subscribers pay slightly more to add other households.
Another factor for Netflix is intense competition from titans such as Apple and Disney.
“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,” Netflix said, adding that it is “doubling down” on content creation.
Charging too much for it now
@PositiveMe: Yep, it’s gone too expensive.
@FiannaFáilness FineGaelness: €8.99 ?? Great value
@Philip Grant: €14.99
@Philip Grant: 8.99 is great if you like low resolution. For HD and 4K they’re taking the piss
@Philip Grant: it went up to €20.99 for 3 to 4 devices. It is now €14.99 for 2 devices ..complete rip off.
@Deirdre Moffat: I just use the one device .. €8.99 is good value ..
They hiked up their price yet again.. pure greed. I cancelled mine and I’m delighted. I thought I’d miss it but with the evenings being longer etc I don’t even bother with it.
@Nurse on call: and then with the shorter evenings in autumn ??
No mention in your story of the recent price hike that caused many, like me, to cancel their subscription
Nothing on the bleedin thing any more
@RadioMikeOBrien: completed it mate
@RadioMikeOBrien: yeah like I’d find myself interested in a new show they released only for it to get cancelled (even if quite popular) after 1-3 seasons. I don’t want continuous new content rehashing old ideas or a constant stream of any new stuff to the detriment of shows I actually was interested/invested in.
@Jensen Bhroin: well it’s all algorithm and data driven so if a series isn’t capturing enough interest they drop it like a hot potato.
Price for three screens went up to like 16 euro a month so wasn’t paying that. There are some good things on it but to be honest if you ever see what’s available in even the UK compared to Ireland it would cheese anyone off
@Sinead Merrigan: it went up to €20.99 just last month for 3 or 4 devices!!
@Sinead Merrigan: prime is better value.
Another price hike. Cancelled. Done and dusted. I’ll miss the documentaries but it just wasn’t worth it any more.
hmm more corporate bs…any chance journal could try do journalism instead of these pr puff pieces / dogs on street know price increases and return to work means these numbers shouldn’t surprise anybody -theres a price point streaming subs are sensitive to for lots of people / netflix are seeing reality they cant just rock up fees without any consequences or impact
@Dave Hammond: the great thing about it is that if they hike the price too high, they lose subscribers. Unlike RTE which have a captive “audience” enforced by tough fines from the Gov. I’d be much more concerned about Public sector BS therefore. They have the real power.
They’ve hiked prices and a lot of their originals are weak. It’s not all their fault though, the market has fragmented and now you need 4 services to find the movie you are looking for.
Dodgy box so??
@Paul Gorry: mr sky will bring you to court and you could go to jail
@Big bad bull: yawn, they won’t. Is that you Mr Murdoch ??
@Big bad bull: Hand and hand with BTsports. Fluck them I’ll take the chance.
@Big bad bull: not a hope. I’ve had a dodgy box for about 10 years. You keep paying sky 100 a month so
@Mark Dit: where did you read that I’m paying €100 per month? Ya jack
@Big bad bull: Naw…You get jail only for the master crime of not having a T.V. licence.
It’s got too expensive.
Hardly surprising given the amount of B list movies? Consists mostly of fillers or some reasonably decent movies that can be found elsewhere for free.
Netflix destroyed themselves when they got greedy years ago and blocked customers using VPN’s to get around their country restrictions. That, coupled with a price hike was enough for me and I cancelled my subscription. Why would I want to watch the junk they pawn us off with while they keep their best content for the USA.
I’m also sick of Nexflix pulling good shows and not giving them a decent chance to build up a following. Unless they are an instant hit in many cases, they are immediate dumped soon after. No interest in watching something while fearing it will be pulled by Netflix at any minute!
@J.Rudd: Same. Got into show recently that was number 1 in Ireland for a bit, looked really promising and doing some interesting stuff, cancelled after 1 season despite very positive reviews. Streaming in general leaves me less interested but when it makes it even harder to invest? Reading or downloading serves me better.
They hiked up the price and they’re looking at adding advertisements to tv shows and movies on Netflix as well.
@Paul: no…… Not ads. Please say that isn’t true. I would pay more to keep the ads away!
@Seeking Truth: that’ll be the plan…bring in ads and then you can subscribe to the Mega Tier for 30 quid a month that is ad free. Wait and see.
@Derek Power: I’d just cancel and download tbh.
@Paul: RTÉ article says they are open to offering a cheaper subscription with adverts included to offset the cost.
The monthly subscription has increased, I am cancelling as soon as hubby has finished watching osark. Disney plus is cheaper and much better.
@Mrs Doyle: Disney plus won’t be long catching up with the Netflix price. They had a huge increase last year.
@Mrs Doyle: ozark never ends it is like a black hole.
At least 90% of the new stuff is %) %(%& …. Only staying as my ex subscription
I just don’t find Netflix to be good value anymore. I cancelled my subscription after the price increase. I found myself most evening scrolling endlessly trying to find something to watch. There are a few decent series on it like Ozark and Stranger Things but that’s not worth the €20.99 a month to me.
The others that use my Netflix wouldn’t bother with it themselves and for one of them it’s not worth it for the one show a month, if even, that he watches.
@sinead merrigan. Does the UK have a better selection or something?
Paying 20 quid a month and we don’t even receive the full Netflix catalogue. We get the watered down European version. Fire stick is the only way 60quid a year subscription.
Ridiculously bad movies that insult the intelligence, or tedious series that drag out formulaic drivel for episode upon episode? No wonder their shares are down! … Even the RTÉ Player has more appeal these days.
There is a lot of competition now, with Disney Plus, Amazon Prime and Apple TV (and whatever services I still have not heard of). Who can actually watch that much content? Sometimes too much choice on even the two platforms we have (one subscription, one shared from another household) makes me dizzy and I watch something I have already seen because it is easier!
@Seeking Truth: I have noticed myself doing this too! I spend an age trying to find something to watch and then switch on something I have already seen. Bit of a waste really, isn’t it?
We have Netflix and Amazon Prime ! Went through them both with a critical eye and I have to say Amazon Prime wins my vote . Possibly a bit harder to find stuff but plenty of good content and it’s cheaper ! So bye bye Netflix.
@Deirdre Gosson: Amazon is much better plus you get some free delivery on Amazon and other add ons
Gone too expensive, they can’t blame the Russians for that
When the official streaming services started raising their prices more and more are moving to pirate streaming services….arghhhh
It’s because people are saving for a house
Producing terrible shows like Stay Close is a sure way to get people to unsubscribe.
Dodgy stick way to go
They’re making the classic mistake that seems common to companies that open a new market and grow with it. Eventually that new market matures, reaches saturation and strong competitors appear.
The mistake is not seeing this and continuing to offer shareholders an expectation of continued explosive growth when the market is saturated.
The next step is usually to try for an illusion of growth by wringing more out of the existing customers, whuch irritates them into going elsewhere.
Share prices fall, which was what they were trying to avoid.
The final step is usually a buy out by an established player in the field they sought to disrupt.
See Betfair and Paddy Power for a worked example.
Why oh why does nobody plan for stability ?
@Steve O’Hara-Smith: That’s capitalism in a nutshell though, isn’t it?
@Darren Doyle McCormack: It’s thr blindness to the blantantly obvious fact that growth into an empty market is way.faster than growth in a mature one that amazes me.
@Steve O’Hara-Smith: 100% agree with you.
Don’t worry Mr Netflix. I cancelled my subscription around Christmas but I am restarting it this weekend to watch Better Call Saul. You can take the 10 euro I spend and it will help put food on your table.
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