Russia’s exit, tough competition: Netflix fears losing 2m subscribers
Due to its exit from Russia and tough competition, Netflix fears losing 2 million subscribers in the first quarter of this year.
Russia Today reported that after exiting Russia, Netflix lost $40 billion in revenue following a shocking subscriber loss.
Netflix subscribers
Following tough competition in the market and exit from Russia, the streaming service expects to lose two million customers in the first quarter of this year.
Its shares dropped 37% on Wednesday, causing a huge revenue loss of $40 billion after it existed in Russia.
Netflix’s stock plummeted 37% in early trading on Wednesday, which led to a $40 billion market capitalization loss after the firm disclosed its first customer fall in over a decade.
The number of members declined by 200,000 in the first quarter, falling short of the company’s forecast of 2.5 million new subscribers.
In Russia, the suspension of service due to the Ukraine crisis resulted in the loss of 700,000 users.
After months of success during strict pandemic-related lockdowns, the streaming platform’s fortunes have abruptly changed.
Since January, Netflix had lost roughly half of its value when the company warned of slowing subscriber growth.
Apart from the Russia withdrawal, the firm expects further significant losses in the future, as inflation and tough competition contribute to a fast fall in the number of subscribers.
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As a result, the streaming service expects to lose two million customers in the first quarter of this year.
To address sluggish member growth, Netflix is allegedly considering launching a lower-cost subscription with advertising. HBO Max and Disney+, two competitors, have both had success with similar services.
According to Reuters, Netflix CEO Reed Hastings remarked that those who had followed Netflix know that I’ve been against the complexity of advertising, and a great fan of the simplicity of membership.” “However, he added, I like customer choice as much as I like it.”
Netflix provides premium services for movies and documentaries to its customers.
