The streaming giant Netflix saw a massive drop in its stock after the company reported that, for the first time in a decade, it had seen a loss in the total number of subscribers.
Axios reports that Netflix stocks saw a decline of 20 percent after the platform lost 200,000 subscribers in the first quarter of 2022. The stock was already down by 40 percent year-to-date, with contributing factors including increased competition from other streaming services, as well as slower user growth forecasts from Netflix for Q1.
“Our revenue growth has slowed considerably as our results and forecast below show,” Netflix said in its note to shareholders, citing the “relatively high household penetration” as being responsible for “revenue growth headwinds.”
According to CNBC, the value of a share in Netflix decreased from $3.53 to $2.89, while the company’s overall revenue decreased from $7.93 billion to $7.78 billion.
Netflix had previously announced in March plans to test crackdowns on password-sharing, in order to increase the total number of individual subscriptions. The company said on Tuesday that, in addition to the roughly 222 million paying households, Netflix accounts are being shared with up to another 100 million households that are not paying for the subscriptions.