The Los Gatos, California, company estimated that about 100 million households worldwide are feeding off the same account, including 30 million in the U.S. Among other things, Netflix signaled that it will likely crack down on the sharing of subscriber passwords that has enabled multiple households to access its service from a single account. Netflix has previously predicted that it will regain its momentum, but is now starting to acknowledge that it's mired in a serious malaise that requires action. ![]() That contrasted with an increase of 36 million subscribers during 2020 when people were corralled at home and starved for entertainment, which Netflix was able to quickly and easily provide with its stockpile of original programming. Last year, Netflix had its weakest annual gain since 2016, adding 18.2 million subscribers. "But as several nearly century-old firms erode the incumbent's market share, Netflix is reaching a point where it needs to focus more on subscriber retention, especially in North America, while its legacy media-backed competitors Disney+ and HBO Max continue focusing on subscriber growth in key international territories." "Netflix is still the single most dominant player in the streaming industry, especially in demand for original content," noted Parrot Analytics, a company that analyzes streaming content, in an email. Now investors fear that its streaming service may be mired in a malaise as it faces stiffening competition from well-funded rivals such as Apple and Walt Disney. It marks the fourth time in the last five quarters that Netflix's subscriber growth has fallen below the gains of the previous year. The streaming industry "is more saturated and filled with a multitude of services offering compelling content at prices lower than NFLX's, including mega-tech platforms with deep pockets," Oppenheimer analysts wrote in a note. Netflix is losing subscribers amid rising competition in online programming from Amazon, Apple, Disney and numerous other services. The news deepens troubles that have been mounting for the streaming since a surge of signups from a captive audience during the pandemic began to slow. But the latest subscriber loss was far worse than a forecast by Netflix management for a conservative gain of 2.5 million subscribers.
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