Netflix has for the first time in over a decade reported a loss of subscribers, as per Mashable. Netflix lost 200,000 subscribers globally and could lose more than 2 million subscriptions in the next quarter, according to the company`s report to its shareholders.
Netflix`s 26% tumble after the bell on Tuesday erased about $40 billion of its stock market value. Since it warned in January of weak subscriber growth, the company has lost nearly half of its value.
Why did Netflix lose its subscribers?
Netflix Inc said inflation, the war in Ukraine and fierce competition contributed to a loss of subscribers for the first time in more than a decade and predicted deeper losses ahead.
Suspending service in Russia after the Ukraine invasion resulted in the loss of 700,000 members. The poor results pummeled other video streaming-related stocks, with Roku dropping over 6%, Walt Disney falling 5% and Warner Bros Discovery down 3.5%.
Netflix, which currently has 221.6 million subscribers, last reported losing customers in October 2011. The company is expecting to nail down its ad-supported streaming strategy over the next year or two.
The popular streaming giant is now planning to offer cheaper, ad-supported plans to users over the next year or two as the company aims to boost its subscriber base amid tough competition from rival platforms.
(With Reuters inputs)