Netflix will make up for its losses this way

Netflix considered that one of the reasons for the decline in its profits is due to the account sharing policy that it has adopted since its inception, a policy that it seeks to change after announcing its earnings results for the first quarter of this year, with a noticeable decline that surprised observers.

Netflix recently released its earnings for the first quarter of 2022. Noting a clear recession, despite its revenue of $7.868 billion, up 9.8% year-on-year, it actually lost 200,000 as the number of subscribers is expected to be less by an amount. Two million subscribers in the second quarter of the year.

The network indicated the reasons for the lackluster quarter in its letter to shareholders, specifying the most prominent of which is competition with other digital platforms, in addition to the decline in the number of subscribers in Russia due to the boycott, as well as the sharing of accounts with subscribers in the network.

According to Digital Trends, Netflix says the service is “shared with more than 100 million additional families,” including more than 30 million in the United States and Canada alone.

Thus "account share as a percentage of our paid membership hasn't changed much over the years, but, combined with the first factor, means it's hard to grow membership in many markets - an issue that has been masked by our COVID growth."

The network adds that it will discover "the best ways to monetize participation" since it is practiced by more than 100 million families, noting that "a pilot program has been implemented in Chile, Costa Rica and Peru allowing people to pay more for two extra people they do not live with."

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