Its share fell 24% Netflix at the Wall Street meeting late last night after the company announced that subscribers of the streaming platform declined for the first time in ten years.
The company announced that it lost 200,000 subscribers in the first quarter, the first negative number since 2011.
In fact, the forecasts are bad, as Netflix predicted that it will lose another 2 million subscribers this quarter.
Following this, the company admitted that its revenues are not growing at the rate it would like.
“The coronavirus blurred the picture, significantly increasing our growth in 2020, leading us to believe that most of the slowdown in our growth in 2021 was due to the fact that the pandemic gathered growth earlier. “Now, we believe there are four key interrelated factors that influence,” the company said.
The factors he cites are the following:
- Growth depends on factors it does not control, such as the adoption of connected smart TVs.
- The fact that 100 million households share their codes.
- The huge competition, especially in the last three years, as the big media brands create their own streaming platforms.
- The macroeconomic factors, with the weak economy, high inflation and the war in Ukraine.
Who “cuts” the subscriptions
Netflix’s exit from the Russian market due to the war in Ukraine cost it 700,000 subscribers. But another 600,000 canceled their subscriptions in the US and Canada after the company raised prices.
In the UK, households canceled more than 1.5 million streaming subscriptions (all platforms, not just Netflix), with 38% saying they wanted to save money, a testament to the pressures of family budgets because of accuracy.
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