As analysts predicted, Netflix failed to renew its user base in Q1. More than that, streaming platform lost 200,000 subscribers worldwide The first drop in more than 10 years, since the end of 2021.

Shares were down 23% on Wall Street in post-closing trading, with the release of the financial statement, 19 of which showed the pullback on Tuesday.

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According to the streaming giant, the decline is mainly due to the difficulty of acquiring new subscribers worldwide, as well as the suspension of its service in Russia.

“The suspension of our service in Russia and the gradual decrease in the number of Russian paid subscribers resulted in a gross loss of 700,000 subscriptions. Without this impact, we would have had an additional 500,000 subscribers compared to the last quarter of 2021,” the company said. In a statement.

The industry pioneer experienced strong growth during the pandemic. The market was expecting a correction, but not that strong.

The company earned $7.9 billion in the first quarter of the year, 10% more than in the same period last year, mainly thanks to the increase in 12-month subscribers (+6.7%) and the increase in service value. .

Profit was $1.6 billion compared to the first quarter of 2021 (1.7 billion).

Source: Exame

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