Netflix loses subscribers for the first time in 10 years: shares plunge

Deal For the first time in ten years

Netflix loses subscribers: shares plunge more than 25 percent

Netflix surprisingly loses subscribers

For the first time in over a decade, Netflix is ​​reporting a drop in its subscriber base. Reasons for this include the war in Ukraine, inflation and competition, the group said. The stock lost more than a quarter of its value after the announcement.

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For the first time in ten years, Netflix has suffered a drain on the number of subscribers. Shares of the streaming giant quickly plummeted. The company should expect more losses.

DStreaming market leader Netflix had to cope with a quarter of customer decline for the first time in more than a decade. In the three months to the end of March, around 200,000 subscribers unsubscribed, as Netflix announced Tuesday after the US stock market closed. The number of paid subscriptions worldwide was 221.6 million. at the end of the quarter. According to its own forecasts, the company expected an increase of 2.5 million customers.

Revenue in the first quarter grew 10 percent to $7.9 billion, not that much

Investors reacted with great disappointment to the quarterly report, with shares temporarily down more than 25 percent in after-hours trading. Since the beginning of the year, the price has already fallen more than 40 percent.

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Among other things, Netflix blamed the withdrawal from Russia, where all customer accounts were deactivated due to the aggressive war against Ukraine, for the weak figures. At $7.9 billion, sales also fell short of expectations, despite an increase of around ten percent compared to the previous year. Earnings fell about 6 percent to 1.6 billion dollars (1.5 billion euros).

Netflix expects more losses

It was particularly bad on the stock market that Netflix also expects to lose subscribers in the current quarter, given the growing competition in streaming. And this time the minus should be even higher with around two million customer accounts. The streaming service actually has strong productions at the start with new seasons of hit series like “Stranger Things” and first-rate movies like “The Gray Man” with Hollywood star Ryan Gosling.

Even before the new business numbers were released, analysts were predicting a tough year for Netflix. Competitors like Disney+ are expanding their offerings. Additionally, the streaming provider competes with video websites like YouTube and TikTok and other entertainment offerings. According to a Deloitte study on digital media trends published in March, consumers between the ages of 14 and 25, “Generation Z”, spend more time playing computer games than watching movies, TV series or even listening to music.

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