Netflix subscribers fall for first time in decade, forecasts more losses

Global streaming giant Netflix Inc on Tuesday reported losing subscribers for the first time in more than a decade and predicted more contraction in the second quarter, a rare miss for a company that has been a reliable growth engine for investors.

Netflix offered a gloomy prediction for the spring quarter, forecasting it would lose 2 million subscribers, despite the return of such hotly anticipated series as"Stranger Things" and"Ozark" and the debut of the film"The Grey Man," starring Chris Evans and Ryan Gosling. Wall Street targeted 227 million for the second quarter, according to Refinitiv data.

Streaming services spent $50 billion on new content last year, in a bid to attract or retain subscribers, according to researcher Ampere Analysis. That's a 50 per cent increase from 2019, when many of the newer streaming services launched, signaling the quick escalation of the so-called"streaming wars."

Netflix has been able to increase subscription prices in the United States, the United Kingdom and Ireland, to fund content production and growth in other parts of the world, such as Asia, noted Wedbush analyst Michael Pachter. However, subscription pries in these growth markets are lower.

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