<Anchor> This



is a friendly economic time.

Today (21st) I will be with reporter Han Ji-yeon.

Today's news is about Netflix.

Does a reporter also use Netflix?

(Yes, we are using a friend's account.) Okay.

I am also writing with her wife.

There seem to be a lot of people who use a shared account like this reporter these days.



<Reporter>



Yes, there are currently 5 million paid members in Korea alone, and over 220 million worldwide.



Most of them share an account, but Netflix said they would charge an extra fee for it.



Netflix benefited from shared accounts until it became the world's best online video service, i.e. OTT market.



A maximum of three or four people can access the account at the same time. Originally, only family members or people living together can use the account, and the terms and conditions clearly state that accounts cannot be shared between acquaintances.



However, even the founders have tolerated it in order to attract subscribers to the point that it is positive that several people share Netflix.



But it was right then and wrong now.

As for the number of 'free people' like me, it is estimated that over 100 million households worldwide share the account of a paid member.



<Anchor>



I don't think this is the first time Netflix has said it's going to charge an extra fee for a shared account like this, so why are they saying this again?



<Reporter>



Yes, this is because of the first quarter results announced just after the New York Stock Exchange closed yesterday.



The share price plummeted by more than 25% in after-hours trading.

You must have been surprised.



I'm going to give the shareholders more money on the shared account right away.

I have sent you a letter of promise.



But, like you said, it's not the first time it's been talked about.

Netflix didn't do well in the fourth quarter of last year.



However, as competition in the OTT market intensifies, content investment is also required.

money, you need



While researching ways to monetize it, he came up with increased subscriptions and additional fees for shared accounts.



Already last month, testing in Latin American countries like Chile and Peru allows you to add up to two non-living account sharers for an extra $2 or $3.



<Anchor>



In the end, the number of subscribers, which had been increasing, seems to keep coming up as the number of subscribers decreases. What is the reason for the decrease in the number of subscribers?



<Reporter>



The most direct is the loss of 700,000 subscribers when Netflix stopped its local service in Russia due to Russia's invasion of Ukraine, but there are multiple reasons for Netflix's slump.



The aforementioned 'free' users would also be burdened.

In fact, business has been going well so far, so the corona virus has a big impact.

As my time at home increased, I also had more time to watch OTT.



Looking at the stock price, it was $350 in February 2020, but it has doubled to $700 in November of last year.



However, as quarantine regulations are lifted around the world, stock prices are plummeting.

Raising rates here is poison.



With prices skyrocketing around the world, Netflix is ​​a luxury.

consumption is reduced.



600,000 subscribers churned in the US and Canada, where rates were raised earlier this year.



<Anchor>



Netflix stock price has fallen a lot recently.

Then there are probably a lot of people who have invested in Netflix, but I think they are a bit worried.



<Reporter>



That's right.

Seohak ants must be worried.

I don't know if you slept last night.



In the last 6 months, the amount of money that Seohak Ants invested in Netflix alone is 80 million dollars, which is 100 billion won in our money.



As the reopening, or economic activity, resumes, Netflix has had a negative impact on the Nasdaq index whenever it announces earnings this year.



It fell by more than 35% and fell to pre-corona levels.

However, the outlook for the second quarter is more bleak.



It is predicted that the number of subscribers in the second quarter may decrease by 2 million compared to the previous quarter.

That is, ten times more subscribers than 200,000 in the first quarter could churn.



It is expected to show a sluggish trend for the time being as uncertainties such as war, Corona, and competition between operators increase.