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Netflix Loses 200k Subscribers, Stock Takes Deep Dive

Posted by ilona Trommler on April 20, 2022 at 5:29am
Netflix Loses 200k Subscribers, Stock Takes Deep Dive

From the story: Netflix suffered its first subscriber loss in more than a decade, causing its shares to plunge 25% in extended trading amid concerns that the pioneering streaming service may have already seen its best days. The company’s customer base fell by 200,000 subscribers during the January-March period, according to a quarterly report released Tuesday (Associated Press). From MarketWatch: The problem, as executives see it, is the range of new competitors that have arrived in the streaming arena, and the number of customers who are sharing their passwords with potential subscribers who instead use the service for free. In a letter to shareholders announcing the results Tuesday, executives said they estimate 100 million additional households are using accounts owned by their 222 million subscribers. Worsening matters, company executives blamed sluggish economic growth, inflation, geopolitical events such as Russia’s invasion of Ukraine, and “some continued disruption from COVID” (MarketWatch).

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