Netflix users could soon see major changes after disappointing announcement

Netflix users could soon see a major change to the streaming service after a disappointing announcement was made.

An unexpectedly sharp drop in subscribers has prompted Netflix to consider changes to its service that it has long resisted, including minimising password sharing and creating a low-cost subscription supported by advertising. The changes announced late on Tuesday (April 19) are designed to help Netflix regain momentum it lost over the past year.

Pandemic-driven lockdowns that drove binge-watching have lifted while deep-pocketed rivals such as Apple and Walt Disney have chipped away at its vast audience with their own streaming services. Netflix’s customer base fell by 200,000 subscribers during the January-March quarter, the first contraction since the streaming service became available throughout most of the world six years ago.

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The drop stemmed in part from Netflix’s decision to withdraw from Russia in protest at the war against Ukraine, resulting in a loss of 700,000 subscribers. Netflix projected a loss of another two million subscribers in the current April-June quarter.

The erosion, coming off a year of progressively slower growth, has rattled another key constituency for Netflix — its shareholders. After revealing its disappointing performance, Netflix shares plunged by more than 25% in extended trading.

If the stock drop extends into Wednesday’s (April 20) regular trading session, Netflix shares will have lost more than half of their value so far this year — wiping out about 150 billion dollars (£115 billion) in shareholder wealth in less than four months. The California-based company