Netflix Shares Crash 25% as Company Reports Loss of Subscribers

• Netflix shares plummeted by more than 25% in extended trading on Tuesday after the company reported that it had lost subscribers

• The streaming TV service reported that more than 200,000 subscribers had been lost, its first decline in more than 10 years

• The tech firm also announced a net income of $1.6 billion in the recently ended quarter, compared to $1.7 billion which was gained in the same period last year

The number of Netflix subscribers has declined for the first time in over 10 years, the company has announced.

In a report that was released on Tuesday, the streaming service disclosed that 200,000 subscribers were lost in the first three months of the year.

The decline comes after the company raised subscription prices in key markets and canceled its service offering in Russia, earlier this year.

Despite the sad news for investors, Netflix has hinted that more loss is to be expected as it begins to crack down on account sharing between users. The tech-movie giant is pushing to sign up new members as it estimates that more than 100 million households are breaking its rules by sharing passwords.

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The CEO of the company, Reed Hastings said:

“When we were growing first, it wasn’t high priority to work on (account sharing). And now we’re working super hard on it.”

As expected, the announcement on Tuesday caused the shares of the company to plunge.

Netflix shares crashed by more than 25% to $262 as it reported earnings of $1.6 billion in the first quarter of the year. This represented a decline from the $1.7 billion that was recorded in the first quarter of 2021.

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