Netflix said it lost 200,000 subscribers in the first three months of this year, the first drop in ten years. In advance, 2.5 million new subscribers were expected.
Netflix is suffering from growing competition from other streaming services, such as Disney+. The withdrawal from Russia also affects the company. In total, the streaming service still has more than 200 million subscribers.
Expectations are also low for the current year. A decline of 2 million subscribers is forecast by the end of June.
Netflix has long indicated that the figures have been distorted in recent years. Due to the corona pandemic, people worldwide were staying at home more and there was a great need for entertainment. But now in many countries people can go to cafes, restaurants and cinemas again and some are canceling their Netflix subscription. Increased inflation also plays a role as a factor causing some people to scrutinize their spending.
According to the company, competition from other streaming services has also increased. In recent years, Disney+, HBO Max and, in Europe, Viaplay, among others, have been launched in more and more markets.
Finally, sharing login details is also a problem for Netflix. The company says that about 100 million households watch the streaming service without paying for it.
Despite the disappointing user numbers, annual turnover increased by 10 percent to just under 7.9 billion dollars, converted about 7.3 billion euros. This was partly because Netflix increased the prices of its subscriptions. Earnings came in at $1.6 billion, down from a year ago
Netflix shares fell sharply in after-hours trading. Investors reacted very disappointed to the drop in viewership.