Netflix says it lost 200,000 subscribers in first part of the year

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Netflix says it lost 200,000 subscribers in first part of the year
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The decline in the first quarter of 2022 is the first time the streaming service has lost subscribers in more than 10 years.

Global streaming giant Netflix on Tuesday reported losing subscribers for the first time in more than a decade and predicted more contraction in the second quarter, a rare miss for a company that has been a reliable growth engine for investors.

First-quarter revenue grew 10% to $7.87 billion, slightly below Wall Street’s forecasts of $7.93 billion. It reported per-share net earnings of $3.53. Streaming services spent $50 billion on new content last year, in a bid to attract or retain subscribers, according to researcher Ampere Analysis. That’s a 50% increase from 2019, when many of the newer streaming services launched, signaling the quick escalation of the so-called “streaming wars.”

Netflix has been able to increase subscription prices in the United States, the United Kingdom and Ireland, to fund content production and growth in other parts of the world, such as Asia, noted Wedbush analyst Michael Pachter. However, subscription pries in these growth markets are lower.

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