Netflix said that inflation, the situation in Ukraine and fierce competition for the first time in more than 10 years led to the loss of subscribers. At the same time, Netflix predicts deeper losses for a company that has flourished during the pandemic.
The company said it lost 200,000 subscribers in the first quarter, although it expected to gain 2.5 million new subscribers. The suspension of the service in Russia caused severe damage, resulting in the loss of 700,000 subscribers.
After the release of this information, Netflix shares fell by 26%, and the company lost about $ 40 billion in market value. Lagging subscriber growth is prompting Netflix to consider offering a cheaper ad-supported version of the service, citing the success of similar offerings from rivals HBO Max and Disney+.
Netflix gave a bleak outlook for the spring quarter, predicting the service would lose 2 million subscribers despite the return of hotly anticipated shows like Stranger Things and Ozark and the debut of The Gray Man starring Chris Evans and Ryan Goslingre.