Friday, May 20

Netflix deflates: loses subscribers and blames shared screens | Digital Trends Spanish

The departure from Russia, added to the update of conditions for in some specific markets to raise the rates for those users who share screens with family or friends, plus the competition in the North American market, made Netflix This April 19 they will present red numbers in the first half of 2022.

Shares fell 20 percent and subscribers fell by more than 200,000 users.

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According to data compiled by Bloomberg, Netflix’s numbers this first quarter 2022 were:

  • Income: $7.87 billion vs. $7.95 billion expected, $7.16 billion Y/Y
  • Earnings per share: $3.53vs. $2.91 expected, $3.75 A/Y
  • Net Subscribers: -200,000 vs. +2.51 million expected, +3.98 million YoY

“Netflix’s drop in new users came as a surprise to Wall Street, with analysts looking for a slowdown but positive growth in subscriptions in the first three months of 2022. Subscribers grew by nearly 4 million in the same quarter last year. . In total, Netflix came out of the first quarter with 221.64 million global subscribers.

Letter from Netflix to its shareholders:

“Our relatively high household penetration, including the large number of households sharing accounts, combined with competition, is creating headwinds to revenue growth,” Netflix said in its letter to shareholders Tuesday. afternoon. “COVID’s big boost to transmission darkened the picture until recently.”

“As we work to reaccelerate our revenue growth, through improvements to our service and more effective monetization of multi-home sharing, we will maintain our operating margin at around 20%,” Netflix added. “The key to our success has been our ability to create incredible entertainment from around the world, present it in highly personalized ways, and win more views than our competitors.”

A person points the remote at their TV with the Netflix logo on it.

Other analysts have suggested that excessive competition in the United States, with the consolidation mainly of Disney Plus and HBO Max, has opened up the range of options and limited the slices of the cake for Netflix.

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