The company warned that it expects to lose even more subscribers in the months ahead after it reported lackluster quarterly earnings that showed its first subscriber loss in more than a decade.
For the first time in a decade, the popular streaming service lost subscribers.
After the company's first quarter earnings report, its stock plunged more than 20%, with revenue and subscriber growth both coming in below expectations.
In the first quarter, the streaming giant reported revenue of $7.78 billion, up 10% from last year, but what really spooked investors was that the company lost 200,000 subscribers in the quarter.
The company expects to lose two million subscribers in the current quarter, as it blamed password sharing and increased competition for slowing revenue growth.
The company would have only added 500,000 net additions last quarter if it hadn't suspended its service in Russia.
After the recent subscriber loss, the company now has 221.6 million paying customers, which is down from 221.8 million in the fourth quarter of 2011.
The company wrote in a letter to shareholders that revenue growth has slowed considerably.
This year, shares of the company have fallen over 40%, as the broader market sell-off has. Like other growth stocks, it has been hard-hit by surging inflation and rising rates, but a significant portion of the company's recent struggles are related to slowing subscriber growth. Rival platforms are spending more money in order to gain market share. Facing threats from the likes of Disney+ and HBO Max, Netflix already spends the most on content, with a budget expected to reach more than $20 billion in 2022.
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