Netflix said inflation, the situation in Ukraine and stiff competition caused it to lose subscribers for the first time in more than 10 years. That said, Netflix is predicting deeper losses for the company, which thrived during the pandemic.
The company said it lost 200,000 subscribers in the first quarter, though it expected to gain 2.5 million new subscribers. The suspension of the service in Russia took a heavy toll, resulting in the loss of 700,000 subscribers.
After this information emerged, Netflix stock fell 26 percent and the company lost about $40 billion in market value. The lag in subscriber growth prompts Netflix to consider offering a cheaper version of the service with ads, citing the success of similar offerings from competitors HBO Max and Disney+.
Netflix gave a grim forecast for the spring quarter, predicting that the service will lose 2 million subscribers despite the return of such hotly anticipated series as “Very Stranger Things” and “Ozark” and the debut of “Grey Man” starring Chris Evans and Ryan Goslinger.