It’s the first time the streamer has reported a subscriber loss in more than a decade.
Highlights
- Netflix reported a loss of 200,000 subscribers during the first quarter.
- The company’s shares cratered more than 25% in extended hours after the report.
- Netflix is forecasting a global paid subscriber loss of 2 million for the second quarter.
- Co-CEO Reed Hastings said the company is exploring lower-priced, ad-supported tiers in a bid to bring in new subscribers.
- Netflix also cited growing competition from traditional entertainment companies, as well as rampant password sharing for the recent stall in paid subscriptions.
- The last time Netflix lost subscribers was in October 2011; the company says it’s seeing a downturn as people return to more normalized out-of-home activities.