Netflix Shares Tank 25% After Company Leaves Russia

Amid the drop, Netflix announced it is mulling cutting the password sharing option — believed to be used by over 100 million households — and creating a special subscription system, introducing adverts.

Netflix has suffered a disastrous 25.7 per cent drop in shares after the company revealed it had lost 200,000 subscribers compared to the first quarter of 2021.

After the streaming platform announced it was pulling out of the Russian market, it experienced a major customer outflow, with at least 700,000 subscribers lost, resulting in the first drop in the number of subscribers since 2011.

“Our revenue growth has slowed considerably,” the company wrote in a letter to shareholders Tuesday. “Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration — when including the large number of households sharing accounts — combined with competition, is creating revenue growth headwinds".

Netflix also projected a loss of another 2 million subscribers in the current April-June quarter.

At the same time Netflix reported a drop in its net income, which is now 6.4 per cent lower than last year.