Netflix blames misuse of family plans cause 200,000 subscribers to drop

by ddos ·

Netflix earlier announced results for the first quarter of fiscal 2022, which showed that although revenue increased by 10% compared to the same period last year to $7.87 billion. However, the number of global subscribers has decreased by 200,000 users, and it is even more expected that there will be a loss of 2 million users in the second quarter.

Netflix, on the other hand, blamed the loss of users on more and more people abusing the family plan sharing function, so it is expected that the sharing of accounts by non-real family members will be more strictly restricted in the future. On the other hand, Netflix also stated that some of the reasons for the loss of users are related to Russia’s invasion of Ukraine, and some continued disruption from COVID-19. Therefore, when the service to Russia is stopped, about 700,000 users are lost. However, Netflix has not blamed the recent increase in subscription fees in the United States for the loss of users.

In order to further remedy the loss of users, Netflix co-CEO Reed Hastings revealed that it will consider launching a use plan with advertisements and a relatively low subscription fee. In this way, it competes with competitors of the same nature as Disney+, but it also breaks Netflix’s practice of not placing advertisements in its content in the past.

At the same time, co-CEO Ted Sarandos also revealed plans to deploy live sports events in the future, in order to attract more users to watch and increase the stickiness of service usage. However, Ted Sarandos did not disclose when the service will be launched, and if Netflix launches the service successfully, it will be able to compete with Apple’s upcoming live event content on the Apple TV service.

Tags: NetflixNetflix family plans