A Netflix announced yesterday (20) that it lost 200 subscribers in the first quarter compared to the previous one, a first in more than 10 years, and its shares fell by more than 24% in electronic transactions after the closing of Wall Street.
This strong price drop penalized the announcement of the drop in subscribers to its services worldwide, as well as its overall performance in the quarter ended in March.
In fact, Netflix earned 7,9 billion dollars, more than 10% compared to the same period in 2021, thanks to the increase in the number of subscribers (6,7%) and the rise in prices, but its profits of 1,6 billion dollars were lower than the counterparts, which had been 1,7 billion dollars.
The quarterly drop in subscribers was attributed to the difficulty of acquiring new subscribers in all regions of the world and the suspension of service in the Russian Federation.
This company had numbers that benefited from the new coronavirus pandemic, so investors were now expecting a correction, but not as strong as the one presented.
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Netflix expected to increase its subscriber count by 2,5 million, and analysts expected even more, but it lost, which reduced the total to 221,64 million.
"The suspension of our service in the Russian Federation and the progressive decrease in the number of paid Russian subscriptions resulted in a net loss of 700 thousand subscribers. Without this impact, we would have had 500 new subscribers” in relation to the last quarter, detailed the Californian company, in its statement with the results.
"The loss of Netflix subscribers is very telling for a society that has not stopped gaining subscribers for an entire decade.“, reacted Ross Benes, an analyst at eMarketer.
"With low subscriptions and poor growth prospects, Netflix will have to refocus on secondary segments such as video games or derivative products to seek to grow its profits“, He added.
