Netflix loses 200,000 paid subscribers in first quarter, shares tank 20%
Streaming giant Netflix saw its stock tumbling by 20 per cent after it reported a loss of 2 lakh paid subscribers in the first quarter of 2022 -- its first subscriber loss in over a decade.
Moreover, Netflix forecasts a global paid subscriber loss of 20 lakh for the second quarter (Q2) of 2022.
The decline has brought Netflix's subscriber base to 221.6 million, down from 221.8 million in the previous quarter.
"The suspension of our service in Russia and winding-down of all Russian paid memberships resulted in a 7 lakh impact on paid net adds; excluding this impact, paid net additions totalled 5 lakh," the company said in a statement late on Tuesday.
The company told its shareholders that it expected to add 2.5 million net subscribers during the first quarter, compared with 4 million in the same quarter a year ago.
The main challenge for membership growth, said Netflix, is continued soft acquisition across all regions.
