Streaming giant Netflix on Tuesday reported a drop in subscribers for the first time in a decade. The company predicts that the number will continue to fall in the second quarter.
Netflix lost 200,000 subscribers in the first quarter of 2022 and, as a result, missed its target of 2.5 million users for the period. The company’s decision in early March to suspend service in Russia following the invasion of Ukraine resulted in the loss of 700,000 customers.
“The sheer number of households sharing bills, combined with competition, has created a headwind for revenues. The massive Covid-driven streaming boom has obscured this scenario until recently,” Netflix said.
In the after-market (after the market closed), the company’s shares plummeted 24%. The last time Netflix reported a loss of users was in October 2011. Currently, the streaming service has 221.6 million subscribers.
The company predicts the loss of 2 million users for the second quarter, even with the planned releases of Stranger Things and Ozark.
First-quarter revenues grew 10% to $7.89 billion, slightly below the market forecast of $7.93 billion.
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