Jakarta –
Netflix are having terrible days. In its latest financial report, the video streaming giant for the first time in the last decade, experienced a decline in subscribers, to be exact, 200 thousand people.
The unsatisfactory news was immediately responded negatively by investors. Netflix’s stock price plummeted to 35%. That makes Netflix’s market capitalization decrease to USD 50 billion, or more than IDR 700 trillion.
This bad news, according to Netflix, is related to several factors. The decline in customers is a result of increasingly tight competition and the various restrictions on the Corona pandemic are no longer being enforced. So people are no longer at home watching Netflix like before.
The slowing growth of household customers also played an important factor. Moreover, there is the phenomenon of sharing passwords with friends or family who are not at home, a practice that Netflix does not allow.
As quoted detikINET from CNBC, Thursday (21/4/2022) Netflix estimates that about 100 million households currently share passwords with other family or friends.
To contain the rate of decline, Netflix is considering a massive crackdown on password sharing that doesn’t fit its purpose and will offer lower subscription prices, but with ad serving.
However, the impact may not be felt in the short term. “Even though their plans have a basis, they won’t see a big impact for long,” said Bank of America analysts.
Netflix currently has 222 million customers worldwide, including Indonesia. Their customers boomed during the Corona pandemic and many people needed entertainment at home. Now, those times seem to have passed.
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(fyk / fay)
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