Netflix suffered its first subscriber loss in more than a decade, causing its shares to plunge 25% in extended trading amid concerns that the pioneering streaming service may have already seen its best days.
According to the ABC News the company’s customer base fell by 200,000 subscribers during the January-March period, according to its quarterly earnings report.
It’s the first time that Netflix’s subscribers have fallen since the streaming service became available throughout most of the world outside of China six years ago.
Netflix acknowledged its problems are deep rooted by projecting a loss of another 2 million subscribers during the April-June period.
If the stock drop extends into Wednesday’s regular trading session, Netflix shares will have lost more than half of their value so far this year — wiping out about $150 billion in shareholder wealth in less than four months.
