Why did Netflix lose 2 lakh subscribers in just 3 months?

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.

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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.

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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)

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