The lockdown made many of us fall in love with Netflix, right?Well, it is now going through a dark phase...
In a recent report, Netflix CEO Reed Hastings revealed recently that 200,000 members had abandoned the service in the first quarter of the year 2022, with more expected on the way.
The company's stock sank more than 44%.Adding to this, billionaire investor Bill Ackman chose to sell his Netflix shares despite suffering a massive loss since things were suddenly looking so bleak.But why is this happening?
Answer this question honestly: Are you sharing a Netflix subscription?This is a huge issue for Netflix!
Surprizingly, this was acceptable to the company 6 years ago, when CEO Hastings said, "We love people sharing Netflix!"The CEO isn't so calm now that an estimated 100 million users are using each other's accounts.
Netflix has been working for a long time to combat the password-sharing industry.Last month, the streaming platform revealed that users in Chile, Peru and Costa Rica would have to pay an additional fee if they wanted to share accounts with their families.
Similar tactics would be implemented in other nations soon in order to reclaim subscribers.The business might also take a chance with an ad-supported, low-cost version of its service, which is currently being done by its main competitors.
Despite all this, saying that it's dying may be a bit too much given how Netflix always manages to have an edge above its competitors.While other password-sharing days may be over, do you think Netflix will bounce back stronger than ever?