Netflix Stock Price Plummets to 35% After Losing 200,000 Subscribers

Netflix announced that it has recently lost 200,000 subscribers in the first three months of the year, which marks a major setback for the streaming giant.
In its recently released quarterly earnings report, the company further projected a loss of another two million subscribers over the next quarter.
With the weak performance in Q1, Netflix said its slowdown in growth was due to various factors, including account sharing, continued disruption caused by the pandemic and increased competition from rival streamers.
It ended March with 221.6 million worldwide subscribers.
The week finished with a 35 per cent drop in Netflix’s stock price as investors fretted about the company’s slowing growth and mounting competition.
In terms of capitalisation, Netflix is now worth $1009 billion, making it more difficult to raise money to fund the investment for content production upon which subscriber growth has been dependent.
Even though it has plans to introduce low-cost subscriptions that adverts will support to boost customer acquisition, users fear that its prices will go up to compensate for fewer subscribers and the biggest single-day loss of value in its history.
The streaming giant signaled that it would likely crack down on sharing subscriber passwords that have enabled multiple households to access its service from a single account.