Netflix claims that rising inflation, fierce competition, and some Covid-related disruptions contributed to the loss of 200,000 subscribers in the first quarter of this calendar year, citing geopolitical tensions — notably the war in Ukraine, which prompted a suspension of services in Russia — as well as rising inflation, fierce competition, and some Covid-related disruptions.
After months of success during severe pandemic-related lockdowns, the streaming platform’s fortunes have suddenly changed. Since January, when the company warned of slowing subscriber growth, Netflix’s stock has lost over half of its value.
Apart from the exit from Russia, the firm expects even more losses in the future, as inflation and tough competition contribute to a significant drop in the number of consumers. The streaming service expects to lose two million customers in the first quarter of 2019.
To address weak subscriber growth, Netflix is allegedly considering launching a lower-cost version of the service with advertising. HBO Max and Disney+ have also had success with similar offers.