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Netflix Posts 200,000 Q1 Sub Loss, Cites Account Sharing, Among Other Factors

Netflix April 19 said it lost 200,000 net subscribers for the first quarter (ended March 31). The subscription streaming VOD service had projected a net sub growth of 2.5 million. Netflix, which ended the quarter with 221.6 million subscribers, is projecting a net loss of 2 million subs in the current second quarter, ending June 30.

The company cited password sharing, mature markets, increased competition and the Russian boycott, among other factors, for the sub growth slowdown.

“We estimate that Netflix is being shared with over 100 million additional households, including over 30 million in the [U.S./Canada] region,” Netflix wrote in the shareholder letter. “Account sharing as a percentage of our paying membership hasn’t changed much over the years, but it’s harder to grow membership in many markets — an issue that was obscured by our COVID growth.”

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Notably, Netflix posted subscriber losses across all of its regions, except the Asia Pacific, where it added 1 million subs. The service lost 640,000 subs in North America, 300,000 in Europe, Middle East and Africa, and 350,000 in Latin America.

Netflix shares were down nearly 25% ($40 billion!) in aftermarket trading.

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