Netflix's video streaming service suffered the first loss in worldwide subscribers in its history, leading to a massive sell-off of its shares. The company's customer base fell by 200,000 subscribers from January to March, according to a quarterly report released Tuesday. Its stock then dropped 23 per cent in after-market trading.
The subscription figure was far worse than company management's forecast for a conservative gain of 2.5 million subscribers. The news deepens troubles at the streaming service that have been mounting since a surge of signups from a captive audience during the pandemic began to slow.
It is the first time Netflix's worldwide subscribers have contracted, although the service previously had a decline in US subscribers in 2019. Now Netflix is bracing for things to get even worse with a projected loss of another 2 million subscribers during April-June.
Investors had already been bailing out of the company's once high-flying stock amid a dramatic slowdown in subscriber growth. If the shares behave similarly in Wednesday's regular trading session, Netflix's stock will have lost more than its value so far this year.
