The global flow giant On Tuesday, Netflix announced the loss of subscribers for the first time in more than a decade And predicted a further contraction in the second quarter, a rare failure for a company that a A reliable growth engine for investors.

Netflix lost 200,000 subscribers in the first quarterIt falls far short of its modest predictions that it will add 2.5 million subscribers and its shares on Wall Street fell by 23% in after-hours trading.

The flow giant explained this This decline is mainly due to the difficulty of gaining new subscribers around the worldAnd also to suspend services in Russia.

The industry pioneer saw strong growth during the pandemic. The market was waiting for a correction, but not so strong.

“The suspension of our service in Russia and the gradual decrease in the number of paid Russian subscribers has led to a net loss of 700,000 subscriptions. “Without this impact, we would have an additional 500,000 subscribers in the last quarter of 2021,” the company said in a statement.

In addition, the official Russian agency TASS reported this week Russian consumers have sued Netflix over 60 million rubles ($ 733,772 or $ 677,071) in the country over the suspension of its services. The group lawsuit was filed in Moscow’s Khamovnichesky court, the agency’s lawyer Konstantin Lukoyanov told the agency.

“Today we filed a class action lawsuit against American Netflix Service in the Jamovnichesky District Court in Moscow. “The lawsuit is based on the violation of the rights of Russian consumers by Netflix unilaterally refusing to provide services to Russia,” he said.

In addition to the Russian invasion of Ukraine, Netflix explained that “a large number of families who share accounts, along with competition, create resistance to rising incomes.”Regarding the difficulties of attracting new customers.

The firm had $ 7,900 million in invoices in the first quarter of the year, up 10% from a year earlier in the same period.In particular, thanks to the increase in the number of subscribers (+ 6.7%) in 12 months and the increase in tariffs.

Net profit was deployed in both $ 1.6 billion, less than $ 1.7 billion in the first quarter of 2021.

Netflix’s poor results hit other promotions related to video, such as Roku ROKU.O, which fell more than 6%; Walt Disney DIS.N, nearly 4% and Warner Bros. Discovery WBD.O, 2%.

Spent streaming services $ 50 billion in new content last yearIn an effort to attract or retain customers, according to the researcher Ampere Analysis. This is a 50% increase compared to 2019.

Ი Considering that Growth slows in sex markets like the US, Netflix is ​​focusing more and more on other parts of the world And invest in local language content.

According to Reuters and AFP

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