Netflix lost 200,000 subscribers globally in the first quarter of 2022 – the first time in 10 years that is has lost in numbers. As a result, its share price fell by more than 24% on Tuesday.
The drop was linked to the suspension of the service in Russia as well as difficulty in getting new subscribers in all regions in general, explained the streaming service. Added competition in the form of Disney+ further explains Netflix's loss of numbers.
"The suspension of our service in Russia and the gradual decrease in the number of Russian paying subscribers resulted in a net loss of 700,000 subscriptions. Without this impact, we would have had 500,000 additional subscriptions," the company said.
The streaming giant saw its numbers skyrocket during the Covid-19 crisis. In Belgium, people on average watch over five hours of TV per day, according to a study from Video Observer. It is an increase from a study done in 2018, an indication of how the pandemic changed viewing habits.
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The industry expected numbers to stabilise as the pandemic subsided but did not foresee such a hit. Netflix had hoped to add 2.5 million subscribers to its portfolio, but instead by losing users it has taken numbers down to 221.64 million subscriptions.
From January to March, the streaming giant gained $7.9 billion in revenue, nearly 10% more than a year ago due to an uptake in subscribers during the last year (+6.7%) and the increase in prices. It generated $1.6 billion in net profit, though this was less than the $1.7 billion in the first quarter of 2021.
The loss of revenue also helps explain why Netflix is trying to crack down on password sharing.
Viewing habits in Belgium
Younger people in the Flanders region have decreased their TV usage after the pandemic, with many users between 16-24 instead opting for TikTok. Around 62% of this age group uses the app, spending an average of 72 minutes a day on it, according to a study by researchers from Ghent University.
But what is in Netflix's favour is that 24% of the 25-34-year-olds prefer streaming services, abandoning TV subscriptions. In general, 55% of people in Flanders have access to at least one streaming service, with 49% stating they use Netflix, the researchers reported.
Overall, Belgians still stick to their pandemic induced viewing habits, according to the Video Observer study. The streaming giant may be losing subscribers globally, but pandemic habits seem hard to break in Belgium.
