Netflix shares plunge more than 35% amid subscriber drop

Shares in Netflix fell more than 35% on Wednesday as the stock market reacted to disappointing results.

For the first time in a decade, the streaming giant reported a net loss in subscribers.

It blamed the quarterly drop on its withdrawal from the Russian market over the invasion of Ukraine, as well as inflation and stiff competition.

Its suspension of service in Russia cost it 700,000 subscribers, it said.

In total, it lost 200,000 subscribers over the January-March quarter and it predicted a further loss of 2 million subscribers in the current April-June quarter. 

Netflix has 221.6 million subscribers. It reported a quarterly net profit of $1.6 billion (€1.47 billion), down from $1.71 billion last year.

Its share price fall also dragged down Disney, Roku and Warner Bros Discovery.

Password-sharing concerns

In light of the results, Netflix is considering cracking down on password-sharing and introducing a low-cost, advertising-supported subscription tier.

It estimates that 100 million households worldwide are watching its services for free using someone else's account, including 30 million in the US and Canada.

"Those are over 100 million households already are choosing to view Netflix," Netflix CEO Reed Hastings said. "We've just got to get paid at some degree for them."

It will expand a trial program currently running in some Latin American countries, where subscribers can pay a nominal fee to extend their subscription to another household.

aw/fb (AFP, AP, Reuters)