The company also said it expects the losses to continue, forecasting a global loss of 2 million paid subscribers for the second quarter of the year.
Besides, the company indicated that the suspension of its service in Russia and the liquidation of all memberships in that country resulted in a loss of 700,000 subscribers. Excluding this impact, Netflix said it had seen 500,000 new memberships during the first quarter of 2022.
However, in the letter it presented to its investors, the company indicated that they will maintain a commitment to creating new content. “Our revenue growth has slowed considerably… Streaming is gaining ground, as we predicted, and Netflix titles are very popular around the world.”
The streaming company blamed increasing competition from traditional entertainment companies launching streaming services, as well as password sharing for the recent stagnant growth in paid subscriptions, prompting it to place restrictions on this issue and limit users to share accounts.
“However, our penetration is relatively high in households, when you include the large number of shared accounts in households,” Netflix said.
The company estimates that in addition to its 222 million paying households, the service is shared with more than 100 million additional households through shared accounts.
As the company explores other growth options, such as adding video games, analysts and investors are wondering what else Netflix can do to boost revenue.