News
Netflix loses subscribers for the first time in a decade
Netflix reports losing 200,000 subscribers during the first quarter. They expect to lose another 2m in the next.
This is the first time in almost a decade that the company has suffered a drop.
“Our revenue growth has slowed considerably as our results and forecast below show,” the company notes in the letter to its shareholders.
The news impacted the company’s stocks as they fell 25%
In its letter, the company states four prime reasons for the drop. It includes the deceleration in broadband rollout, their competitors, COVID and the war in Ukraine.
Additionally, the company estimates that on top of their 222m paying households, the service is being shared with an additional 100m households.
As Netflix tries to work on its revenue re-growth, it will be holding its operating margin at around 20%.
Shreya Vats contributed to this report