First modification:
The streaming content giant suffered from the loss of subscribers. The company explains this decline in output from the pandemic, rampant competition, the war in Ukraine, and shared screens. After Wall Street opened, its value fell 36%. The decline in audience is expected to continue into the next quarter, so Netflix is evaluating alternatives, such as a cheaper service that includes advertising.
The Netflix platform had a fateful Wednesday in which it announced quarterly results lower than expected and, as a consequence, suffered a 36% drop at the opening of Wall Street.
Between January and March, the streaming service giant suffered the loss of 200,000 subscribers in what was its first audience cut in more than a decade, which meant a setback for the expectations that were outlined for 2022, which included an exponential increase of 2.5 million subscribers.
The executives justified this decrease in adherents in the current market context, in which the number of online content competitors is increasing and estimates indicate that there are 100,000 users who consume the Netflix service, but through the shared screen system.
The company assures that the drop in subscribers also responds to the global situation, at a time when the world is emerging from the Covid-19 pandemic (a time when streaming platforms enjoyed a profound boom) and with a war in Ukraine that led to the interruption of service to millions of citizens in Russia.
The company, which obtained profits slightly lower than those of the first quarter of 2021 -of 1,597 million dollars- also hid behind inflation, the economic consequences arising from the outbreak of the Russian-Ukrainian conflict since there were productions paralyzed by health restrictions .
No upward prospects in the near future
In addition, they anticipated that the future will not be prosperous in the short term either and they calculate that next quarter they will have another two million fewer subscribers. To counteract this situation, the company said it will explore options, such as introducing a subscription model with ads for a lower price.
According to analysts, this could be the darkest trading day for Netflix in more than a decade and the end of the revenues obtained during the pandemic.
This company’s situation dragged down digital entertainment competitors such as Disney (-4.6%), Amazon (-2.33%), which are two of the company’s direct rivals. Spotify, which offers music content, was also affected by -8%.
with EFE
#Netflix #falls #Wall #Street #losing #subscribers #time #decade