Netflix has seen its subscriber base fall for the first time in more than a decade, sending the stock plummeting. After the market closed, the streaming provider announced a loss of 200,000 subscribers for the first quarter. Netflix had predicted 2.5 million new customers.
In the current quarter, Netflix expects a drop of two million subscribers. Among other things, the company blamed the withdrawal from the Russian market, where all customer accounts were deactivated because of the war of aggression against Ukraine, for the weak numbers. In addition, the US group refers to a large number of households that shared their subscription. 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 last lost customers in 2011
Netflix currently has 221.6 million subscribers – and so far the trend is rising. The company last reported a decline in subscriptions in October 2011. 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.
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 spend more time playing computer games than watching films, TV series or even listening to music.