Its shares lost a third of their value after losing thousands of subscribers
A heavy loss for "Netflix"
"Netflix" suffered a severe loss after its shares fell more than 30 percent on the New York Stock Exchange at the opening on Wednesday.
This came after disappointing results in which the network recorded a significant drop in subscribers for the first time in a decade.
The value of the streaming giant fell by a third on Wall Street, or more than $40 billion, according to Facts.
The value of the stock reached $240, a decrease of 31.16 percent, a few minutes after the opening of trading.
Netflix had expected to gain 2.5 million additional subscribers, while analysts were expecting a larger number, but instead lost 200,000 subscribers, which led to a decrease in total subscriptions to 221.64 million.
Netflix expects more declines in the second quarter of this year.
The giant American platform for streaming broadcasts attributed this decline mainly to the difficulty of attracting new subscribers in all regions of the world, in addition to the suspension of service in Russia.
In sum, Netflix generated revenue of $7.9 billion in the January-March period, 10 percent more than the same period last year, especially thanks to an increase in the number of subscribers on an annual basis (+6.7 percent) and an increase in the price of its subscriptions.
But its net profit amounted to 1.6 billion, compared to 1.7 billion in the first quarter of 2021.
The giant platform noted that many families share accounts among their members and the fierce competition in the sector “creates obstacles to our growth.
The huge boom in streaming services thanks to Covid obscured reality until recently.”
"Netflix's loss of subscribers says a lot about a company that has been steadily gaining subscribers for a decade," said eMarketer analyst Ross Bennis.
"With lower subscriptions and weak growth prospects, the group will have to rely more on secondary services such as video games or derivative products in an effort to increase its revenue," he added.
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