Netflix Loses Subscribers
MOBILE, Ala. (WALA) - It’s not a good time to own Netflix stock.
Shares of the streaming service tanked in after-hours trading Tuesday after it reported negative subscriber growth.
The company’s customer base fell by 200,000 subscribers during the January-March period, according to its quarterly earnings report released Tuesday It’s the first time that Netflix’s subscribers have fallen since the streaming service became available throughout most of the world outside of China six years ago. The drop this year stemmed in part from Netflix’s decision to withdraw from Russia to protest the war against Ukraine, resulting in a loss of 700,00 subscribers.
Netflix acknowledged its problems are deep rooted by projecting a loss of another 2 million subscribers during the April-June period.
Netflix is hoping to reverse the tide by taking steps it has previously resisted, including blocking the sharing of accounts and introducing a lower-priced — and ad-supported — version of its service.
The news sent Netflix shares careening to lose 25% of their value.
With the pandemic easing, people have been finding other things to do, and other video streaming services are working hard to lure new viewers with their own award-winning programming. Apple, for instance, held the exclusive streaming rights to “CODA,” which eclipsed Netflix’s “Power of The Dog,” among other movies, to win Best Picture at last month’s Academy Awards.
Netflix also is trying to give people another reason to subscribe by adding video games at no extra charge — a feature that began to roll out last year.
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