Netflix Reveals First Subscriber Loss in a Decade, Stock Falls

    Image copyright: USA Today

    The Facts

    • Netflix failed to meet projected growth targets with its customer base shrinking by 200K during Q1 according to a report released Tues. It marked the company's first subscriber loss in over a decade.

    • The streaming service also warned shareholders that another 2M subscribers were likely to leave by July.

    The Spin

    Narrative A

    Netflix needs to crackdown on password sharing, as more than 130M households worldwide use someone else's account. However, this comes with some risk - the company has built a consumer-friendly brand and password sharing has helped with that image.

    Narrative B

    Netflix famously vowed never to bring advertising to the platform. But now, in the face of these challenges, another Tech Giant has fallen to the lure of ad-based revenue.

    Narrative C

    Despite the bad numbers, slowing growth in mature markets like the US means opportunities in other parts of the world, like Asia. Over half of the world's broadband homes don't pay for Netflix, representing a huge future growth potential for local language content.

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