The Clap Netflix (NASDAQ: NFLX) reported losing some 200,000 subscribers in Q1-2022 for the first time in a decade.
And there’s more to come The streaming giant expects to lose around 2 million subscribers in Q2-2022. While analysts expected weak subscription performance, they still saw the company adding new subscribers this quarter.
NFLX went waaaaay down Shares of Netflix, which were already down more than 40% year-to-date (YTD), tumbled more than 25% in extended trading. Its stock price went from reaching an intraday high above $350/share to almost $255/share in after-hours.
And others followed suit Netflix’s results sent shares of other streaming companies downward in extended trading. Disney was down 5%, Roku fell 6%, recently-listed Warner Bros. Discovery, owner of HBO Max, was off about 4%, & Paramount fell nearly 6%.
Why are they losing subscribers? Netflix’s management cited growing competition, password sharing, increasing prices, & the Russian-Ukrainian war as causes for its weak quarter.
What they’re doing about it Netflix is planning to ban password sharing, which they expect some 100 million households currently do. The company also plans on adding ads to a lower-priced subscription plan, as well as cut down its movie & TV show spending.