Netflix lost 200,000 global subscribers in the first quarter compared to the end of 2021, a first in more than a decade, and its share subsequently fell 23% in after-hours e-commerce.
221.64 million subscriptions
The streaming giant explained that this drop is mainly related to the difficulty in acquiring new subscribers in all regions of the world, but also to the suspension of the service in Russia.
The industry pioneer had inflated numbers during the Covid 19 pandemic. The market was expecting a correction, but not as much.
Netflix had expected to add another 2.5 million subscribers — and analysts were expecting more — but instead lost some, bringing the total to 221.64 million subscriptions.
The suspension of our service in Russia and the gradual decrease in the number of Russian paying subscribers resulted in a net loss of 700,000 subscriptions. Without that impact, we would have had 500,000 additional subscriptions. compared to the last quarter, the Californian company specified in its press release.
1.6 billion net profit
It generated $7.9 billion in revenue from January to March, almost 10% more than a year ago, thanks in particular to the increase in the number of subscribers over the year (+ 6.7%) and the increase in its prices .
But it generated 1.6 billion in net profits, down from the 1.7 billion in the first quarter of 2021.
“Netflix’s subscriber loss is very telling for a company that has been consistently adding subscribers for a full decade,” he said. responded Ross Benes, analyst at eMarketer.
“With subscriptions falling and growth prospects weak, Netflix will have to rely more on secondary branches like video games or derivative products to try to grow its revenue,” he added.
Netflix Lost 200,000 Subscribers in the First Quarter, Its Stock PlungesEXPAND