Netflix is ​​losing subscribers. For the first time in more than 10 years

And Netflix, while announcing the results, announced that the number of subscriptions fell in the first quarter by 200 thousand, and analysts expected an increase of 2.73 million. Anyway, the company itself expected to gain 2.5 million new subscribers in the first quarter.

Effect? up to 25 percent. The giant’s share price declined in post-session trading.

Netflix reported that the suspension of services in Russia led to a 700,000 drop in the number of subscriptions. Excluding this effect, the company will receive a net profit of 500,000 PLN. new clients.

The service, which currently has 221.6 million customers, last recorded a loss in October 2011, and in the second quarter expects to lose 2 million people who paid for its services. Analysts expected Netflix to reach 227 million customers in the second quarter.

Netflix’s first-quarter revenue rose 10 percent. It hits $7.87 billion vs. $7.93 billion forecast, and earnings per share are $3.53. (Analysts were counting on $2.89.)

According to company representatives, the stagnation in the number of subscribers, in addition to the war in Ukraine and sanctions against Russia, is also caused by the increased competition from traditional entertainment companies that have recently provided streaming services, as well as the sharing of password by a larger number of subscribers.

The company has 222 million paying subscribers, but it estimates an additional 100 million households use password sharing, which the company has been trying to fight for a long time.