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Netflix to consider advertising after it loses subscribers for first time in 10 years 

Shares in Netflix Inc (NASDAQ:NFLX) dived 26% yesterday after the streaming company revealed it lost 200,000 subscribers in the first quarter, reflecting high inflation, the war in Ukraine and strong competition.  Analysts had expected the company to add 2.5mln subscribers in the first three months of 2022.  Following the decline, its total global subscriber base stands at 221.6mln.  This is the first time in a decade that Netflix lost subscribers and the company predicted more gloom ahead as it expects subscriber losses to hit 2mln in the second quarter.  To counter the decline, Netflix said it will now consider a lower-priced subscription service with advertising, which its boss has previously been opposed to.  “Those who have followed Netflix know that I’ve been against the complexity of advertising, and a big fan of the simplicity of subscription,” said Netflix CEO Reed Hastings. “But, as much as I’m a fan of that, I’m a bigger fan of consumer choice.”  The streaming giant reported first-quarter revenue up 10% at US$7.87bn, slightly below market predictions. Net earnings per share were US$3.53, beating the analyst consensus forecast of US$2.89.  Netflix said it is looking into how it can generate revenue from the 100mln households worldwide that watch its service through account-sharing.  “These are already over 100mln households that are already choosing to view the service. They love the service, we have just got to get paid at some degree for them,” Hastings told investors on a call.  The company recently announced a crackdown on account-sharing in Chile, Costa Rica and Peru.