Netflix is bleeding subscribers for the first time in over a decade — and it's expecting to lose another 2 million more subscribers in coming months

The first subscriber losses in over a decade were revealed in the earnings report.

The earnings miss sent the stock tumbling in after-hours trading, as Wall Street reacted to the loss of 200,000 subscribers in the first quarter and predicted more losses in the second quarter.

The last time they lost subscribers was in 2011.

In its letter to shareholders, the company projected that it could lose two million subscribers. The letter described revenue growth challenges, in the form of a high household penetration and growing competition. The company raised its prices in both the US and Canada.

The letter said that the big COVID boost to streaming obscured the picture.

As the world reopens and competitors from Disney+ to HBO Max continue to elbow for subscriber dollars, Netflix is beginning to experience a viewership boom.

The impact of connected TVs and other technology on the pace of growth of the addressable market is one of the main factors that hampered the streamer.

The subscriber losses give a better idea of why the company is testing ways to crack down on password sharing. 30 million households in the US and Canada are being shared with 100 million other freeloading households, according to the company's shareholder letter.

The company said in the letter that sharing helped fuel their growth. New paid sharing features are being tried out in Latin America and will focus on finding ways to monetize freeloading households.

The war in Russia had an impact on the business of the company. The company said that its decision to suspend service in Russia resulted in a 700,000 impact on paid net subscribers in the quarter.