Where cost might be a factor, Netflix is also looking at offering new memberships at reduced costs at the expense of adding advertising to these streams. The group has already started to test new features such as allowing households the choice of adding lower cost additions to existing household subscriptions. The company estimates that in addition to the 222 million paid subscriptions it has globally, approximately 100 million extra households are making use of existing subscriptions. To tackle the subscriber issue, Netflix is looking to address the account sharing issue noted. ![]() Remedial action to boost revenue and memberships Increased competition and account sharing have also been cited as some of the headwinds the company facing as well. Netflix had forecast more than 2 million subscribers for the quarter. Excluding the 700 000 clients lost in Russia, the group would have actually added net paid subscriptions of 500 000.Įven if we exclude the Russian accounts, 500 000 memberships would still be considered a soft number. It also affects onboarding from the region until such time as we see resolve in the current Russia Ukraine conflict. Important to note that the group did cut its service in Russia, resulting in around 700 000 accounts being lost. Q1 subscriber numbers fell by 200 000 net paid memberships. The groups outlook for the second quarter has been cause for further investor distress as Netflix anticipates another 2 million paying subscribers will be lost over the upcoming reporting period. While the Q1 results for Netflix saw revenue and earnings per share (EPS) in line to slightly ahead of consensus estimates, markets have drawn caution from the first drop in subscriber numbers noted in more than a decade.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |