Netflix has announced its quarterly figures. Not only do you tell you how much money has been flushed into the coffers, but it’s also about the number of subscribers. Netflix has recently raised prices in some markets, and it is quite possible that some no longer want to participate. Or is it?
Revenue growth has slowed significantly, according to the company. The titles are very popular – but the competition and the relatively high budget penetration lead to a headwind in sales growth – if you include a large number of households with joint accounts.
A small hint that in the future you will take even stronger action against the sharing of accounts outside of households? Or that you increasingly look at which country the traffic comes from, which pays for a Turkish account, which has recently become more expensive, but is dirt cheap compared to German prices?
In any case, many new customers had been expected, but 200,000 subscribers have dropped out. Netflix has 221.64 million subscribers worldwide. For the current quarter, Netflix expects an even sharper decline in new customers. The company said it expects subscribers to decline by 2 million in the second quarter of the fiscal year.
Netflix started in its info to investors that due to the suspension of the service in Russia during the quarter, 700,000 paying subscribers were lost. Netflix generated revenue of $7.87 billion in the first quarter. The bottom line is $1.6 billion in profit. After the figures were announced, the stock plunged by 30%.