The streaming platform has reported a drop in its subscriber base.
(Photo: Reuters)
Netflix has seen its subscriber base fall for the first time in more than a decade, sending the stock plummeting. The streaming provider announced a loss of 200,000 subscribers for the first quarter on Tuesday after the US market closed. Netflix had predicted 2.5 million new customers. The outlook for the current quarter was also bleak, with an expected drop of two million subscribers. During the development, the US group referred to a large number of households who shared their subscription and the competition. Netflix shares fell 24 percent in after-hours trading. Other streaming services also gave way in their wake, such as Disney with a minus of three percent.
Netflix currently has 221.6 million subscribers. The company last reported a decline in October 2011. According to Refinitiv data, the market is actually expected to reach 227 million subscribers in the current second quarter.
Revenue for the first quarter grew 10 percent to $7.9 billion, not quite as strong as forecast. Earnings per share were $3.53.
Netflix had already surprised investors with a gloomy outlook after the fourth quarter of the past financial year. Since then, the stock is down about a third in regular trading through Tuesday and more than half since November’s peak of about $700.
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Even before the new business figures were published, analysts were assuming a difficult year for Netflix. Competitors like Disney+ are expanding their offerings. In addition, the streaming provider competes with video websites such as YouTube and TikTok and other entertainment offers. According to a study by Deloitte on digital media trends published in March, consumers between the ages of 14 and 25 – “Generation Z” – spend more time playing computer games than films, TV series or even listening to music.
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