Global streaming giant Netflix has suffered from first Loss in all over the world subscribers in more of holding and expecting more contraction in The second quarterRare beauty queen for A company that was reliable growth engine for investors.
Netflix customer base decreased by 200,000 subscribers During the January-March period, according to a quarterly report released on Tuesday, deepening issues that have escalated since enjoying a boom from a closed captive audience down During the early stages of the coronavirus pandemic.
That was much worse than a file conservative he won of 2.5 million subscribers Netflix management outlook. that it decision in Early March to suspend service in Russia yielded after the invasion of Ukraine in Loss of 700,000 members.
The company’s stock is down 23%. in distance-market trading$30 billion wiped out in market the value.
Poor Netflix results Hit other video streaming related stocks, with drop roku over 6%, Walt Disney 3% and Warner Bros. Discovery down 2%.
Netflix, which currently It has 221.6 million subscribers and last I mentioned a loss in Client in October 2011.
Netflix offered a bleak prediction for the spring quarterAnd he expected that he would lose 2 million subscribers despite the return of Highly expected series Such as “Stranger Things”, “Ozark” and debut of Gray Man starring Chris Evans and Ryan Gosling. Wall Street targeted 227 million for The second quarteraccording to Refinitiv data.
Or not-quarter Revenue grew 10% to $7.87 billion, slightly below Wall Street forecast of 7.93 billion dollars. I mentioned all-share net earnings of $3.53.
“The big number of Families sharing accounts – combined with competitionhe is creating Revenues growth headwind. The big Explaining the difficulties, Netflix said, “The COVID promotion to streaming has obscured the image until recently.” of Signature up new Client.
The world’s dominant streaming service was expected to report a slowdown growth Intense medium competition From established competitors like amazon, traditional media Companies such as Walt Disney, the newly formed Warner Bros. Discovery, the newly formed Warner Bros. Discovery, and cash- New arrivals like apple.
Streaming services spent 50 billion dollars on new content last year and in try to attract Or keep it as subscribers, as analyzed by Researcher & This is a 50% increase from 2019, when many newer Streaming services launch, indicating rapid escalation of The so-called “flow wars”.
Like growth slows in mature markets like The United States, Netflix increasingly focused on other parts of The world and investment in Sweetened language content.
“While hundreds of millions of homes Pay for Netflix, okay over half of The world broadband homes Not yet – represent huge future growth potential,” the company said in Declaration.
Netflix managed to increase subscription prices in US, UK and Ireland Funding content production and growth in other parts of The worldlike Asia, note Wedbush analyst Michael Butcher. However, subscription prices in these growth Markets are lower.
Standard analyst Matthew Harrigan warned that uncertain global economy It can appear as an albatross. for member growth and Netflix’s ability to continue raising prices competition intensifies.
Streaming services are not the only format of entertainment competition for consumer time. The latest Deloitte’s Digital Media Trends Survey released in In late March, he revealed that Generation Z, those consumers between the ages of 14 and 25, spend more the time playing games from watching movies or TV series at home Or even listen to it music.
the majority of Generation Z and Millennial consumers surveyed said they spend more Time watching user-created videos like these on TikTok and YouTube from watching movies or shows on streaming service.
Netflix, learn about transformation in Consumer entertainment habits, began to invest in gamingHowever, it does not contribute materially to the company’s revenue.
