Netflix has lost significant hundreds of thousands of users. Aftermath, HBO and HBO Max were able to gain a massive subscriber count of 77 million new users.
HBO and HBO Max Grew Subscriber Count by 76.8 Million
Both HBO and HBO Max suddenly saw a rise in subscriber count by a whopping 76.8 million new users, to be exact. The new subscriber count was reportedly recorded during the end of this year's first quarter.
AT&T, HBO, and HBO Max's previous parent company reported the change in subscriber count just recently. The change reportedly marks an increase of 3 million compared to the previous quarter while seeing a massive 12.8 million increase in subscribers year-over-year.
Netflix Lost a Significant $50 Billion from Its Market Cap
The average domestic revenue per user (ARPU) increased from the previous quarter's $11.15, officially reaching $11.24. The increase came around when Netflix reported a significant loss in subscribers for the first time in over a decade. Netflix's report of subscriber loss was noted in an article by Yahoo News.
The loss in subscriber count sent the stock of Netflix diving down by a significant 35% after the official report. This resulted in the company losing a large chunk of its market cap or a $50 billion dip.
Netflix Estimates 100 Million Households are Sharing Passwords
According to the story by CNBC, there are already 222 million paying households to Netflix's streaming service. Not all of them, however, were estimated to be paying customers, as the streaming service estimates that 100 million of the households were using shared passwords.
Netflix gave reference to the reduced pandemic restrictions and the increase in competition for more and more users being glued to their screens as one of the factors that caused the slowdown in Netflix's subscriber count.
Netflix Crackdown on Password Sharing and Drop in Stock Price
Although initially leading in subscribers for a significant period, Netflix has reportedly had a devastating decline in growth, resulting in an even loss of subscribers. The decline in users started to happen ever since the streaming service announced that it would be cracking down on password sharing according to Yahoo News.
The move by Netflix to crack down on password sharing was, as some users felt, contradicting its previous tweet saying, "Love is sharing a password." According to the XDA-Developers, Netflix says that password sharing is the reason behind the decline in subscribers during the first quarter of 2021.
Love is sharing a password.
— Netflix (@netflix) March 10, 2017
As of press time, Netflix is sitting at around $217.55, dropping from its previous average of $350 on Apr. 19 as seen on MarketWatch. After its drop, the stock traded from $217 to $222, which is a significant difference from its previous high of around $690 on October 24, 2021.
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Written by Urian B.
