The American streaming service Netflix reported a lower-than-expected increase in subscribers during the first quarter of the year, with a rise of only 1.75 million. The company’s shares fell after the announcement, with the expected increase being 2.06 million. Last year, Netflix lost 200,000 subscribers, the first decline in over a decade. This naturally led to a decrease in the price of shares.
According to estimates from the MoffettNathanson company, Netflix gained almost nine million subscribers in 2022, half as many as the previous year. Most of the new customers come from Asia. While Netflix increased its revenue year-over-year by almost four percent to $8.2 billion, net income fell by about 18 percent to $1.3 billion.
Netflix announced on Tuesday that it would end its DVD rental business after about 25 years. The company’s original business model, founded in 1997, was to send DVDs by mail. With the growing popularity of streaming, Netflix has decided to end this service due to its low usage.
The decline in the number of new subscribers is not unique to Netflix. Other streaming platforms are also experiencing similar trends, especially in the Czech Republic, where they are not as popular as in other parts of Europe. With the increased competition in the streaming industry, it is becoming more difficult for individual platforms to maintain their market share.
In recent years, many new streaming platforms have emerged, including Disney+, Amazon Prime, and Apple TV. These platforms have become competitors to Netflix, offering exclusive content and competitive pricing.
The future of the streaming industry is unclear, with many experts predicting that it will continue to grow as people move away from traditional cable and satellite TV. However, with the increasing number of platforms, it remains to be seen which platforms will survive and which will fall by the wayside. With its significant market share and huge content library, Netflix will likely continue to be a major player in the industry.