Netflix?s net-flop in the first quarter has led to a 35% decline in the streaming giant?s share price after the company?s disappointing subscription results were released.
The streaming giant posted a 200,000 decline in net subscribers over the first quarter, and expects a further 2 million to cancel their subscriptions in the second quarter.
But why?
Netflix points to the perfect storm of geopolitical tensions, inflation, increasing competition and slowing economic growth as the drivers behind the decline.
But there is more at play here..
Firstly, Russia?s invasion of Ukraine saw Netflix suspend 700,000 accounts in the region.
Meanwhile, gradual monthly subscription fee increases globally have caused some subscribers to switch to cheaper alternatives.
Netflix says it?s now considering introducing advertising into some subscription tiers, whilst cracking down on account sharing to prevent further subscription losses.
Despite the challenges facing the company, Netflix still maintains a 45% market share in the streaming industry worldwide.