Netflix was down over 26% premarket on Wednesday following the release of the company’s latest earnings report, which brought the total market capitalization of the company down nearly $50 billion.
The company reported a 10% increase in revenue during Q1 of 2022, including an 8% increase in average streaming paid memberships. Here’s everything you need to know about what’s going on with the streaming service.
Netflix is bleeding subscribers
The company announced that it had lost a record net 200,000 subscribers during Q1 of 2022, its biggest drop off in over a decade.
“In the near term though, we’re not growing revenue as fast as we’d like,” the company warned in a letter to shareholders. “COVID clouded the picture by significantly increasing our growth in 2020, leading us to believe that most of our slowing growth in 2021 was due to the COVID pull forward. Now, we believe there are four main inter-related factors at work.”
Dispatches From The Front 