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Password sharing costs Netflix 200k members in Q1-2022

Password sharing costs Netflix 200k members in Q1-2022

American streaming service company Netflix reported a loss of 200,000 of its members during the first quarter (Q1) of 2022 – the company's first drop in subscriber count in a decade – coming on the back of account sharing, according to a letter to shareholders published on April 19th.

The number of paid memberships globally declined to 221.64 million in Q1-2022, down from 221.84 million in the previous quarter, and up from 207.64 million in the same quarter a year earlier.

The US-based company is forecasting another decline in the number of paid memberships in the second quarter of 2022, seeing it at 219.64 million.

Netflix’s net income soared to $1.597 billion in the three-month ended March 31st, from $607 million in the last quarter of 2021. Year-on-year net income inched lower in Q1-2022, compared to $1.707 billion in Q1-2021. For the second quarter of the current year, Netflix expects net income to decrease to $1.354 billion.

On the other hand, revenue is expected to surge to $8.053 billion in Q2-2022, compared to $7.868 billion in Q1-2022, and $7.163 billion in Q1-2021.

“Our revenue growth has slowed considerably as our results and forecast below show. Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration - when including the large number of households sharing accounts - combined with competition, is creating revenue growth headwinds,” the company commented.

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