Netflix had golden times during the Corona crisis because people started flocking en masse because of the many people sitting at home, and now the company is in a less prosperous position. The service shrank by 200,000 paying users worldwide in the first three months of this year and expects to lose another 2 million in the second quarter. Therefore, you are now looking for ways to reduce costs and gain new subscribers.
Last month, 150 employees had to leave, as well as dozens of self-employed workers. Netflix has lost about 70 percent of its stock market value in the past six months.
With over 200 million subscribers, Netflix is still a giant, but it has the necessary problems. Where a few years ago it was almost alone when it comes to streaming movies and series, it is now locked in a fierce competition with the likes of Disney Plus, Amazon Prime Video and Apple TV Plus.
In addition, Netflix pulled out of Russia, where it had about a million subscribers, due to the invasion of Ukraine. Due to inflation, some subscribers are also expected to cancel subscriptions such as Netflix.
In an effort to cut spending, Netflix has canceled some projects, including children’s animated series Pearl, developed by Meghan Markle, Duchess of Sussex. The company also said it will address the issue of password sharing. Netflix estimates that passwords are shared against the rules with about 100 million families.
Finally, Netflix announced a cheaper plan that will show users ads between episodes and movies. The streaming service expects to roll out this subscription model towards the end of this year, reports New York times Based on an internal note. Details about the price are unknown.
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