Netflix’s video-streaming service suffered its first loss of global subscribers in its history, prompting a massive sell-off in its shares
Netflix’s video-streaming service suffered its first loss of global subscribers in its history, prompting a massive sell-off in its shares
Netflix’s video-streaming service suffered its first loss of global subscribers in its history, prompting a massive sell-off in its shares. The company’s subscriber base fell by 2,00,000 subscribers from January to March, according to an quarterly report released on Tuesday; The stock fell 23% in after-market trading.
The number of subscriptions was far worse than company management had forecast for a conservative increase of 2.5 million subscribers. The news deepens troubles at the streaming service, which have been mounting since a wave of sign-ups from a captive audience began to slow during the pandemic.
It’s the first time Netflix’s global subscribers have signed up, despite the service previously seeing a decline in the US. Subscribers in 2019. Now Netflix is preparing for things to get worse, with a projected loss of another 2 million subscribers over the April-June period.
The disappointing performance caused Netflix’s share price to plummet 23% in extended trading. Investors had already backed out of the company’s once-soaring shares as subscriber growth slowed dramatically. If stocks behave similarly in Wednesday’s regular trading session, Netflix stock will have more than lost value so far this year.
It’s the fourth time in the past five quarters that Netflix’s subscriber growth has fallen below last year’s gains, raising concerns among investors that its streaming service is mired in malaise brought on by mounting competition from well-funded rivals how enlarged was Apple and Walt Disney.
