The number of Netflix members has decreased for the first time in the past 10 years, and as a countermeasure, we are considering a plan with advertisements, and what is the cause of 100 million users sharing passwords?

Netflix (PDF file) announced its financial results for the first quarter of 2022 . The number of paying members in this term will be 222 million households worldwide, but the number of members has decreased for the first time in the past 10 years. Netflix claims that the number of paying members is declining because '100 million people share accounts,' and it also reveals that it is considering an advertising plan to improve profitability.

Netflix (NFLX) earnings Q1 2022
https://www.cnbc.com/2022/04/19/netflix-nflx-earnings-q1-2022.html

Netflix blames 100M unpaid accounts after revenue drop- 9to5Mac
https://9to5mac.com/2022/04/19/netflix-subscriber-drop/

Reed Hastings: Netflix is'trying to figure out' ad-supported streaming --The Verge
https://www.theverge.com/2022/4/19/23032869/netflix-ads-streaming-reed-hastings-lower-price

Netflix to Launch Advertising-Supported Cheaper Plans – The Hollywood Reporter
https://www.hollywoodreporter.com/business/digital/netflix-launching-ad-supported-plans-1235132378/

Netflix has announced its financial results for the first quarter of 2022 (January-March). Netflix sales for the same period increased 9.8% year-on-year to a record high of $ 7,868 million. However, Netflix has announced that the number of paying members has decreased by 200,000 in the same period. According to media reports, Netflix has lost 700,000 paying members due to the suspension of services in Russia, which is estimated to have contributed to the decrease in paying members.

Netflix last reduced paying membership in October 2011. As a result, Netflix's stock price has plummeted by more than 20%, and not only the company but also the stock prices of streaming services such as Roku, Spotify and Disney have plummeted. Netflix predicts that the number of paying members will decrease by 2 million in the second quarter of 2022 (April to June).

Netflix shares extend drop to more than 20% after-hours on subscriber losses https://t.co/S33O81Xy3c pic.twitter.com/2NjkhBgjcL

— CNBC Now (@CNBCnow) April 19, 2022

Netflix said, 'Our revenue growth has slowed significantly. As we expected, streaming services outperform linear services , and Netflix titles are very popular around the world, but many share accounts. Our earnings growth is slowing due to the influence of our households, 'and we estimate that the number of this' account sharer 'is as high as 100 million.

In addition, Netflix has been striving to crack down on users who illegally share accounts with multiple people, and notify account sharers to ' create their own account ', etc. We are testing 'the ability to share accounts and make users pay for unauthorized viewing'.

Netflix is testing the ability to share accounts and pay fraudulent viewers-GIGAZINE

In addition, Netflix co-founder Reed Hastings said, 'We are positively considering offering a lower-priced plan with ads as a consumer option,' account sharing. It is also revealed that it is considering increasing the number of paying members by preparing a cheaper plan as well as letting people pay the fee. In addition, Hastings CEO says, 'We will implement a plan with advertisement by next year or next year.'

According to Deadline , CEO Hastings is also considering adding live sports to Netflix, but said he was 'not sure' if adding the service would get more paid members. It seems that there is. 'We're not saying we'll never deliver sports content, but we have to be confident that we'll make a lot of money,' said Hastings.