Netflix, the American subscription streaming service and production company’s stock plunged after news that the number of subscribers to the platform fell for the first time in over a decade.
The stock plummeted 21 percent in after-hours trading, as Wall Street reacted to Netflix losing 200,000 subscribers in the first quarter and predicting further losses in the second quarter.
The last time the streaming giant posted a subscriber loss was in 2011.
In a letter to shareholders, Netflix projected it could lose two million subscribers next quarter.
The letter described “revenue growth headwinds” in the form of a “relatively high household penetration” and growing competition.
The company also recently raised its prices in the US and Canada.
The letter said the big COVID boost to streaming obscured the picture until recently.
The company says macroeconomic factors such as inflation and geopolitical conflict have affected its subscriber base.
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Edited by Jesus Chan
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