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Netflix loses 200,000 subscribers and shares lose a quarter of their value

Netflix loses 200,000 subscribers and shares lose a quarter of their value

This sharp drop in price led to the impact of the announcement of a drop in the number of subscribers of its services worldwide, as well as its performance in the quarter ending in March.

In fact, Netflix made a profit of 7.9 billion US dollars (7.3 billion euros), more than 10% compared to the same period in 2021, thanks to the increase in the number of subscribers (6.7%) and higher prices, but its profits of 1.6 billion dollars were less Of their peers that were 1.7 billion dollars.

The quarterly decrease in the number of subscribers is due to the difficulty in obtaining new subscribers in all regions of the world and the suspension of service in the Russian Federation.

This company had numbers that benefited from the novel coronavirus pandemic, so investors were now expecting a correction, but not as strong as the one presented.

Netflix had hoped to increase its subscriber base by 2.5 million, and analysts expected more, but lost, bringing the total to 221.64 million.

“The suspension of our service in the Russian Federation and a gradual decrease in the number of paid Russian subscriptions led to a net decrease of 700,000 subscribers. Without this impact, we had 500,000 new subscribers ”compared to the last quarter, the Californian company detailed in its earnings statement.

“Netflix’s loss of subscribers is hugely revealing for a community that hasn’t stopped gaining subscribers for an entire decade,” said Ross Bennis, analyst at eMarketer.

“With lower subscriptions and weak growth prospects, Netflix will have to re-orientate itself into secondary segments, such as video games or derivatives in pursuit of increasing its profits,” he added.

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