Netflix Record Its First Customer Decline In More Than 10 Years

Share post:

Netflix is recording its first customer decline in more than a decade.

While Netflix forecast it would add 2.5 million customers this quarter, the company instead lost 200,000 customers. This excludes the 700,000 Russian customers lost after Russia’s invasion of Ukraine.

Factors that have led to the decline, according to Netflix, include increased competition, the conflict between Ukraine and Russia, and password sharing.

“We’ve always tried to make sharing within a member’s household easy, with features like profiles and multiple streams. While these have been very popular, they’ve created confusion about when and how Netflix can be shared with other households,” Netflix statement said.

Going forward, the company is considering charging customers for password sharing instead of banning it. It plans to test the change in Chile, Costa Rica and Peru. Users can add up to two profiles for 2,380 Chilean pesos, 2.99 US dollars and 7.9 Peruvian sol.

According to Netflix’s Chief Operating Officer Greg Peters, it will take a year to conduct the tests and begin enforcing the change, which will be enforced later in the United States.

The sources for this piece include an article in NPR.



Related articles

AI chatbots used for X-rated activity draws scrutiny

Following scrutiny from authorities and other people involved, Replika, an app that uses AI technology similar to OpenAI's...

Stanford researchers makes budget friendly ChatGPT AI

Stanford researchers fine-tuned a seven-billion-parameter variant of Meta's recently announced LLaMA model using 52,000 instruction-following demonstrations generated by...

Microsoft launches AI-powered Copilot

Microsoft has introduced a new AI-powered Copilot for its Microsoft 365 apps and services. The AI-powered Copilot is...

Apple experiments with language-generating AI

Apple discussed AI and large language models at a recent internal event, revealing its experiments with language-generating artificial...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways