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Netflix Lost 200,000 Subscribers Since The Beginning Of 2022, And Now The Streaming Service Might Crack Down On Password Sharing

By Gina Florio··  2 min read
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There's a plethora of streaming services to choose from these days, from Netflix to Hulu to Apple TV to Disney+, and the competition is stronger than ever.

Netflix may be the original streaming service, but it seems to be hitting a wall when it comes to subscribers. Hit shows like Bridgerton, Stranger Things, and Ozark created a loyal fanbase, but it seems like these shows aren't enough to keep fans around. In fact, Netflix has lost subscribers for the first time in 10 years.

Netflix Lost 200,000 Subscribers in the First Quarter of This Year

There may be trouble ahead for Netflix – the company's shares fell 35% recently after it was reported that 200,000 subscribers dropped the streaming service since the start of 2022. It's forecasted that Netflix will lose upwards of 2 million subscribers in the second quarter of this year.

“Our revenue growth has slowed considerably,” the company said in a letter to shareholders. “Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration – when including the large number of households sharing accounts – combined with competition, is creating revenue growth headwinds.”

Netflix suggested that password sharing may be partly to blame for the drop in subscriber count. CEO Reed Hastings said there wasn't a priority to work on account sharing "when we were growing fast," but "now we're working super hard on it." If you're currently sharing an account with friends or family, you can expect that to change in the future.

Hastings also said that Netflix might consider creating different tiers of subscription, which would provide some cheaper options for people who are looking to save money.

Of course, there are also other reasons that account for people dropping their streaming services, such as inflation and the sudden increased cost of living. When it comes down to choosing which bills you're going to pay for your family to live comfortably, Netflix doesn't exactly come out high on the list.

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