Netflix streaming is undergoing a difficult year. The large -scale outflow of service subscribers continues and in the second quarter of 2022, the company is preparing for anti -crisis measures.
For the first time in 10 years, Netflix recently announced the loss of subscribers in the last reporting quarter. This was followed by a large sale of its shares, and the capitalization of streaming fell by $ 40 billion in a short time.
In addition, its own shareholders filed a lawsuit against it, believing that Netflix last year hid the deplorable state of affairs, drawing rainbow prospects.
However, even then, during the period of removing restrictions in the world, people began to be at home less and less, and a larger number of subscribers learned to use the accounts of friends and relatives. Of the 220 million subscribers in Netflix estimates the total access to the volume of 100 million accounts.
After the loss of 500 thousand subscribers in recent months, Netflix is preparing for the drawdown of another 2 million subscribers. A great contribution to this also made a disconnection of 700 thousand Russian users from the service.
As anti -crisis measures, the company will strengthen the fight against access under the common passwords. Now, those accounts that are used outside the same family and a similar geographical location will be blocked faster.
In addition, the company removed a moratorium from an idea by free subscription. Some of its competitors are already actively offering a service option that was the first to come up with online pirates.
In other words, content is monetized due to built -in advertising when viewing. Thus, a non -paying subscriber still brings money to the company when using the service.
Such a scheme can support the subscriber base of the company, but will reduce profits, because A considerable number of paying subscribers will want to try a new option, and not a fact - that the online advertising will bring the service more. According to statistics, paid subscriptions bring much more contextual advertising, but they are difficult to keep and increase.
With any crisis, unless, of course, he sends a large number of people home, like a pandemic, the costs of entertainment services will decrease.
More interesting daily on our channel:
Netflix will appear free with advertising in the last quarter of 2022.
#NETFLIX #Cinema Cinema #Cinema #Film News