Netflix is losing subscribers for the first time in a decade

Netflix is losing subscribers for the first time in a decade

Transcript¹

The easing of pandemic restrictions² has not been good for Netflix. The streaming service reported a decline in subscribers. The company also blames password sharing.

STEVE INSKEEP, HOST:

Netflix is in trouble. The streaming service says it's losing subscribers for the first time in a decade. It blames competition and people who use other people's passwords. NPR tech reporter Bobby Allyn is with us. Good morning.

BOBBY ALLYN, BYLINE³: Hey, Steve.

INSKEEP: Bobby, this feels like a big deal because it speaks to the culture, right? So many people use video streaming, so a change in Netflix means some change in a lot of people's habits. What is happening?

ALLYN: Yeah, there's a lot going on here. First, the company is adjusting to the end of the pandemic boom that really supercharged Netflix, obviously. Steve, there's more to do these days than binge-watch television, so that means fewer eyeballs for Netflix. Then there's two other big factors. There's more competition than ever. Netflix is still the No. 1 streaming service, but it's fighting with Disney, Hulu, HBO, Amazon Prime for our viewing attention. And like you mentioned, Netflix executives said a big driving factor here is people sharing their Netflix account. So, yeah, that ex of yours or your best friend who knows your Netflix password - the company says those people are hurting the company's bottom line.

INSKEEP: I assume they bake in - they assume a certain amount of password-sharing, so how did it get so widespread that it's a problem?

ALLYN: Yeah. Netflix says when the company was growing fast, they just weren't that focused on it. But now they estimate that there are some hundred million households around the world that are account-sharing.

ALLYN: Wow.

ALLYN: A crackdown is - yeah. And they say a crackdown is coming. So Netflix says, you know, those people who are sharing their passwords with friends and loved ones and others are going to get a notification soon from Netflix saying, hey, you owe us a little bit more money. Here is Netflix CEO Reed Hastings talking about this after a recent earnings⁴ call.

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REED HASTINGS: Remember, these are over 100 million households that already are choosing to view Netflix. They love the service. We just got to get paid, you know, in some degree for them.

ALLYN: Yeah. Hastings says we want our money, right? It's a bit of a business dilemma⁵, though, because he - you know, he wants these people to stick around and watch Netflix programming. But at the same time, you know, he says that Netflix should be paid for it.

INSKEEP: Yeah. How else is Netflix adjusting to the decline in audience?

ALLYN: Yeah. Well, so the big headline-grabbing change, I think, is commercials are coming to Netflix. There are soon going to be cheaper Netflix subscription⁶ options that involves ads. And this is a huge departure for the company since they've long pride themselves as being the place on the internet where you can log on, watch whatever you want and avoid annoying internet ads. So we'll see how that goes. But I talked to Beth Kindig. She's a stock analyst⁷ who follows Netflix, and she says ads might not save Netflix.

BETH KINDIG: Eventually, everyone who wants to have a Netflix subscription has a Netflix subscription. And globally, not everyone has internet speeds in order to make streaming doable.

ALLYN: In other words, Netflix streaming has been around for 15 years. If you want to have Netflix by now, you probably already have it. And global growth for many reasons can only keep going for so long.

INSKEEP: Might be becoming a mature business, as they say.

ALLYN: (Laughter) Exactly.

INSKEEP: So they're declining in terms of subscribers, but they've been such a huge player in Hollywood. Is there any chance that would change?

ALLYN: Not at all. While yes, as we've been talking about, they're - they've hit a bit of a rough patch. But, you know, in Hollywood, they're a real force to be reckoned with. They're incredibly prolific⁸, and they have far more revenue coming in than traditional movie-making studios like Warner Brothers and Paramount⁹. You know, but Netflix executives say they are bracing¹⁰ for more trouble ahead, to the tune¹¹ of another 2 million subscribers gone.

INSKEEP: Bobby, thanks for the update - really appreciate it.

ALLYN: Thank you, Steve.

INSKEEP: That's NPR's Bobby Allyn.

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1 transcript   

n.抄本，誊本，副本，肄业证书

参考例句：

• A transcript of the tapes was presented as evidence in court.一份录音带的文字本作为证据被呈交法庭。
• They wouldn't let me have a transcript of the interview.他们拒绝给我一份采访的文字整理稿。

2 restrictions   

约束( restriction的名词复数 )； 管制； 制约因素； 带限制性的条件（或规则）

参考例句：

• I found the restrictions irksome. 我对那些限制感到很烦。
• a snaggle of restrictions 杂乱无章的种种限制

3 byline   

n.署名；v.署名

参考例句：

• His byline was absent as well.他的署名也不见了。
• We wish to thank the author of this article which carries no byline.我们要感谢这篇文章的那位没有署名的作者。

4 earnings   

n.工资收人；利润，利益，所得

参考例句：

• That old man lives on the earnings of his daughter.那个老人靠他女儿的收入维持生活。
• Last year there was a 20% decrease in his earnings.去年他的收入减少了20%。

5 dilemma   

n.困境，进退两难的局面

参考例句：

• I am on the horns of a dilemma about the matter.这件事使我进退两难。
• He was thrown into a dilemma.他陷入困境。

6 subscription   

n.预订，预订费，亲笔签名，调配法，下标（处方）

参考例句：

• We paid a subscription of 5 pounds yearly.我们按年度缴纳5英镑的订阅费。
• Subscription selling bloomed splendidly.订阅销售量激增。

7 analyst   

n.分析家，化验员；心理分析学家

参考例句：

• What can you contribute to the position of a market analyst?你有什么技能可有助于市场分析员的职务？
• The analyst is required to interpolate values between standards.分析人员需要在这些标准中插入一些值。

8 prolific   

adj.丰富的，大量的；多产的，富有创造力的

参考例句：

• She is a prolific writer of novels and short stories.她是一位多产的作家，写了很多小说和短篇故事。
• The last few pages of the document are prolific of mistakes.这个文件的最后几页错误很多。

9 paramount   

a.最重要的，最高权力的

参考例句：

• My paramount object is to save the Union and destroy slavery.我的最高目标是拯救美国，摧毁奴隶制度。
• Nitrogen is of paramount importance to life on earth.氮对地球上的生命至关重要。

10 bracing   

adj.令人振奋的

参考例句：

• The country is bracing itself for the threatened enemy invasion. 这个国家正准备奋起抵抗敌人的入侵威胁。
• The atmosphere in the new government was bracing. 新政府的气氛是令人振奋的。

11 tune   

n.调子；和谐，协调；v.调音，调节，调整

参考例句：

• He'd written a tune,and played it to us on the piano.他写了一段曲子，并在钢琴上弹给我们听。
• The boy beat out a tune on a tin can.那男孩在易拉罐上敲出一首曲子。