LThe shares of the Netflix chain collapsed this Wednesday in the US for results that disappointed the market.
The shares of the online entertainment platform lost more than 35% since opening, after announcing that it lost subscribers in the first quarter, for the first time in 10 years.
The The company lost 200 thousand subscribers in the world in the first quarter compared to the end of 2021.
The streaming giant explained that this decline This is mainly due to the difficulty of getting new subscribers around the world, and also due to the suspension of the service in Russia.
The industry pioneer saw strong growth during the pandemic. The market expected a correction, but not as strong.
“The suspension of our service in Russia and the progressive decrease in the number of Russian paid subscribers led to a net loss of 700 thousand subscriptions. Without this impact, we would have had an additional 500 thousand subscribers” over the last quarter of 2021, the company specified in a statement.
LThe firm invoiced US$ 7,900 million in the first quarter of the year, 10% more than a year ago in the same period, in particular thanks to the increase in the number of subscribers in 12 months (+6.7%) and an increase in rates.
The net profit was located in both US $ 1,600 million, below the US $ 1,700 of the first quarter of 2021.
On the other hand, the company opened the door to incorporate packages with advertising at a lower cost. “Think of us as fairly open to offering even lower prices with advertising as a consumer option,” Co-CEO Reed Hastings said in remarks about the first-quarter report.
“Allowing consumers who would like to have a lower price and tolerate advertising to get what they want, it makes a lot of sense,” he added according to the specialized site Investing.
(AFP and The Observer)
