$ explained. BIGGEST LOSS USER EL Netflix lost 200,000 subscribers in 2022 first quarter, the streamer’s first subscriber loss in more than a decade; its shares plummeted 35.1% and it lost $54 billion in market cap overnight Itnow has 221.64 million Anunstable future: Ina subscribers globally,but | crowded market, Netflix’s anticipates losing 2 millionin predicament might be shared the second quarter byallOTTsexplained. WHY THE DECLINE, HOW WILLNETFLIX REVIVE? REASONS © Great competition; Netflix US is the most expensive (monthly plans: $9.99, $15.49, $19.99) @ 100 million+ households (30 million in UCAN) share passwords without paying © Netflix walked out of Russia, following the war, lost 700,000 subscribers #QUIXPLAINED © Bridgerton’s Season 2 (627 million hours watched) and The Adam Project (233.15 million hours) came in March; less time to boost quarterly numbers STRATEGY Ad-supported plans and lower pricing; crackdown on password sharing, monetising it; video games and interactive programming (eg. Exploding Kittens), among othersexplained. WHO WATCHES NETFLIX MORE? NETFLIX PAID SUBSCRIBERS BY REGION (Q1 YOY) (IN MILLIONS) @UCAN (US + Canada) @ EMEA (Europe, Middle East, and Africa) @ LATAM (Latin America) @ APAC {Pete ei o a & 5 o 2 0 - ei © o 5 a ey = o i | il 2018 Qi2019 Qi2020 Qi2021 Qi2022 10.9 29.3 Ea 213 74.4 NT 68.5 37.9 (lu26.9 NN 74.6 73.7 _____ Ex [E337 Source: Netflix Filings #QUIXPLAINED$explained. SHARE OF TOTAL eal TIME (IN %) Hulu : 3 : 3 Prime Video 2 23 Disney+ 1 17 Other SVOD 8 9.5 eu 26 28.6 SVOD: Subseri Source: Nielsen EU ETexplained. WILLADS REDUCE SUBSCRIPTIONS? Withads, like YouTube, Netflix may lose popularity, but Deloitte survey shows more than half will opt for OTTs with ads for no/low fee CONSUMER PREFERENCE: STREAMER MODELS (IN %) @ 12 minutes of ad per hour for no monthly fee © Six minutes of ad per hour fora monthly subscription for $6 © Noads fora monthly fee of $12 US @000% Ey BRAZIL 0.000% A * Total number of consumers surveyed in each country Source: Deloitte Insights, Digital Media Trends, 16th edition (March 2022) #QUIXPLAINED 5explained. NETFLIX ANDINDIA © Launched in 2016, Netflix Netflix’s lack of success in India India now has approx. 5.5 Me (US (celta eens ele are (9 million paid users, afractionof | Reed Hastings saidin January Disney+ Hotstar (46 mn; a freemium model: free + © “Nice growth” seen in APAC ad-supported content) and (Japan, India, Philippines, AmazonPrimeVideo(21.8mn), Thailand, Taiwan); boost seen according to research firm Fam Ue LALA or OCLC R (Ud tele D lata nee reduced (to Rs 149; Rs 199) TEXT: THE NEW YORK TIMES, LA TIMES, DEADLINE, VARIETY, AND THE WIRES COU es 6