Netflix lost 200,000 subscribers in the first quarter of 2022 and is now planning to crack down on password sharing in over 100 million households. The company is also open to ads.

After adding 8,28 million new subscribers in the fourth quarter of 2021, Netflix lost 200,000 in first quarter 2022 due to mainly two factors; a higher level of cancellations and an exit from Russia resulting in a loss of 700,000 subscribers.

Netflix is forecasting further loses in Q2 2022 due to four factors; slower uptake of Smart TVs and devices (partly due to the chip shortage), password sharing, competition, and the economic situation.

The streaming giant raised its prices again in the US and the UK in the first quarter of the year and will continue to raise prices in other regions this quarter.

The last time Netflix lost subscribers was in 2011 after it tried to raise the price by splitting the streaming and DVD rental businesses in two.


Password sharing in 100m households
Netflix is now planing to crack down on password sharing. The company started testing two new tools in three countries last month. 

Netflix estimates that over 100 million households benefit from password sharing.

- "... in addition to our 222m paying households, we estimate that Netflix is being shared with over 100m additional households, including over 30m in the UCAN region," the company wrote in its shareholder letter for Q1 2022.

CEO Reed Hastings also appears to be warming up to a cheaper, ad-supported plan. He said that Netflix is "quite open to offering even lower prices with advertising, as a consumer choice", possibly in the "next year or two".

Netflix has 221.64 million subscribers worldwide.