Netflix has said that geopolitical tensions — led by the war in Ukraine that triggered a suspension of services in Russia — rising inflation, fierce competition, and some Covid-related disruptions have contributed to the loss of some 200,000 subscribers in the first quarter of this calendar year.
The abrupt shift in fortune for the streaming platform comes after months of success during strict pandemic-related lockdowns. Netflix has lost nearly half of its value since January, when the firm warned of weak subscriber growth.
The company expects deeper losses ahead, as inflation and fierce competition contribute to a heavy decline in the number of users apart from the Russia exit. The streaming platform forecasts it would lose two million subscribers in the spring quarter.
Netflix is reportedly contemplating offering a lower-priced version of the service with advertising to tackle lagging subscriber growth. Similar offerings from rivals HBO Max and Disney+ have proved to be a hit.
