In a letter to shareholders, Netflix informed its shareholders that its “revenue growth has slowed considerably.”
“ Our relatively high household penetration – when including the large number of households sharing accounts – combined with competition, is creating revenue growth headwinds.”
In its latest results, the company says it lost 200,000 customers in Q1 and forecasts a further loss of 2 million in Q2. As of the end of March, it had a total of 221.64 million paid members globally, down from 221.84 million in the previous quarter.
Meanwhile, its revenues in Q1 amounted to $7,868 million, up from $7,483 million in the previous quarter. Although net income in Q1 was, at $1,597 million, much higher than in Q4 2021, it was down from $1,707 million in the same period last year.
Netflix plans to offer cheaper, ad-supported tiers to consumers over the next year or two, the world’s largest on-demand video streaming service said Tuesday, as it looks to boost its subscriber base amid stiffer competition from rival firms.
Netflix has been asked repeatedly over the years if it would ever consider bringing ads to its platform, an idea it has always shot down