According to the streaming behemoth, while roughly 222 million homes pay for its service, accounts are shared with more than 100 million other families who do not pay for the television streaming service.
Netflix shares fell by a quarter after the business disclosed that its subscriber base dropped in the first quarter of this year. The largest streaming television provider had lost customers for the first time in a decade. The corporation attributed the quarter-over-quarter decline to the suspension of its service in Russia as a result of Moscow's invasion of Ukraine.
Netflix has 221.6 million customers at the conclusion of the first quarter of this year, which was slightly fewer than the last quarter of previous year.
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In the most recent quarter, the Silicon Valley tech business posted a net income of $1.6 billion, compared to $1.7 billion in the same time a year before. Following the revelation of the earnings numbers, Netflix shares fell 25% to $262 in after-market dealings.
"We are not expanding revenue as quickly as we would like," Netflix stated in an earnings letter. It further said, "COVID masked the picture by greatly raising our growth in 2020, causing us to conclude that the majority of our decreasing growth in 2021 was caused by the Covid pull forward."
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Netflix argues that the time it takes for houses to acquire access to inexpensive broadband internet service and smart televisions, as well as customers sharing their accounts with others who do not live in their homes, are obstacles impeding its development.
According to the streaming behemoth, while roughly 222 million homes pay for its service, accounts are shared with more than 100 million other families who do not pay for the television streaming service.
Netflix began trying ways to generate money from users sharing accounts last year, such as providing a feature that allows customers to pay a small fee to join additional families. Another issue affecting Netflix is fierce rivalry from industry heavyweights such as Apple and Disney.
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