Netflix faces huge subscriber loss, may offer cheaper ad-supported plans, limits password sharing
Netflix said inflation, the war in Ukraine and fierce competition lead to a loss of subscribers for the first time in more than a decade and predicted deeper losses ahead, marking an abrupt shift in fortune for a streaming company that was highly used during the pandemic.
The company said it lost 200,000 subscribers in its first quarter, falling well short of its forecast of adding 2.5 million subscribers. Suspending service in Russia after the Ukraine invasion took a toll, resulting in the loss of 700,000 members.
Wall Street sent Netflix’s stock tumbling 26 percent after the bell on Tuesday and erased about $40 billion (roughly Rs. 3,05,320 crore) of its stock market value. Since it warned in January of weak subscriber growth, the company has lost nearly half of its value.