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The drop was called by experts a rare setback for a company that has been a reliable growth engine for investors.
Those numbers have fallen well short of his modest predictions that he would add 2.5 million subscribers this year.
Netflix currently has 221.6 million subscribers.
Netflix, one of the global streaming giants, announced on Tuesday that lost 200,000 subscribers in its first quarter, which amounts to a drop for the first time in more than a decade.
The use of streaming platforms has been gaining ground in recent years, where according to Statista data video services have taken over the entertainment market in Latin America, so it is estimated that in 2020, for the first time in history , the number of streaming video service subscribers would have surpassed pay TV subscribers.
Likewise, the statistics platform details that since its arrival in Latin America in 2011, Netflix has been one of the most used streaming video platforms by Latino viewers.
Currently there is great competition from other platforms that offer this service, such as HBO Max, Amazon Prime Video, Disney Plus, Star +, Paramount +, Apple TV +, among others.
Netflix reported loss of subscribers
According to a statement from the company Netflix Inc. reported a loss of subscribers for the first time in more than a decade, as well as predicted a greater contraction in the second quarter, which experts point out as a rare setback for a company that has been a reliable growth engine for investors.
Also in the information, the firm added that with these numbers they have fallen far short of their modest predictions that they would add 2.5 million subscribers this year.
Recall that Netflix currently has 221.6 million subscribers and according to the brand had recorded its last customer loss in October 2011.
“The sheer number of households sharing accounts, combined with competition, is creating upward revenue headwinds,” Netflix said in its statement.
Suspension of its service in Russia led to the loss of 700,000 users
Let us remember that Netflix withdrew its services in Russia in March in retaliation for the attacks perpetrated against Ukraine, so this exit from said market it meant the loss of 700,000 users.
This announcement recorded that the shares of the company plummeted 24 percent in post-market operations.
Where the poor results of Netflix also hit other values related to video such as Roku, which fell more than 6 percent; Walt Disney, almost 4 percent and Warner Bros Discovery, 2 percent.
According to Refinitiv data, Wall Street also targeted 227 million customers for the second quarter.
While first-quarter revenue grew 10 percent to $7.87 billion, slightly below Wall Street’s forecast of $7.93 billion. Net earnings per share was $3.53.
This fall can be compared to the one registered by the social network Facebook at the beginning of last month, when it registered one of the largest falls in corporate history, suffering a disaster of 230 billion dollars.
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