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Netflix loses subscribers for the first time in ten years

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After years of conquering users at high speed, streaming giant Netflix lost 200,000 subscribers worldwide in the first quarter compared to the end of 2021, the first in more than a decade. And he expects to lose even more in the spring. The news sent the stock tumbling 25% on Tuesday, in electronic trading after the New York Stock Exchange closed.

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To restore the situation, the pioneer of the sector intends above all to tighten the screw on the side of the sharing of identifiers and passwords, which allow many people not to pay for access to the platform. And invest more and more in the production of content so as not to give up too much ground to the competition, such as Disney +, which has been a hit since its launch at the end of 2019.

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Responsible war in Russia

” We know that (the loss of subscribers) is disappointing for our investors, and it’s disappointing of course, but (…) we are determined to achieve these goals and get back into their good graces”said Reed Hastings, co-founder of the company, during the analyst call.

Netflix has seen its numbers swell during the Covid-19 pandemic. The market expected a correction, but not as strong. The industry pioneer had expected to gain an additional 2.5 million subscribers – and analysts were expecting even more – but instead lost some, bringing its total down to 221.64 million subscriptions.

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This drop was partly caused by the suspension of the service in Russia, which resulted in a net loss of 700,000 subscriptions. “Without this impact, we would have had 500,000 additional subscriptions” compared to the last quarter, Netflix said in its earnings release.

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