streaming giant Netflix Inc (NASDAQ:NFLX) reported a net loss of 200,000 subscribers in the first quarter. The loss marked the company’s first reported drop in subscribers in more than 10 years.
Here’s a look back at where Netflix was trading back then and how investors fared along the way.
What happened: Netflix ended the first quarter with 222 million subscribers. The company reported a net loss of 200,000 subscribers, with the US and Canada regions losing 600,000 subscribers in the quarter. The termination of services in Russia also affected the total number of subscribers.
Netflix expects to lose 2 million subscribers in the second quarter.
This was the first quarter that Netflix had reported a drop in global subscriptions since October 2011.
It’s been so long since Netflix reported a drop in subscriber numbers that the majority of its customers were last on hybrid plans with DVDs in the mail and streaming titles.
In October 2011, Netflix announced that it ended the quarter with 23.8 million subscribers, down 800,000 from the previous quarter. The company reported that it had 14 million customers buying DVDs and 21.5 million customers using the streaming service, many of whom subscribed to both.
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Invest $1,000: The last time Netflix reported a quarterly drop in subscribers, shares of the streaming company fell, similar to this week.
Netflix shares closed at $16.98 on October 24, 2011 and opened the next morning at $10.70.
On October 25, 2011, an investor could have bought 93.46 shares of Netflix with $1,000.
That $1,000 investment would be worth $20,394.84 today, for a return of 1,939.5%.
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