For the first time in ten years, streaming giant Netflix saw its subscriber base shrink as its first quarter earnings dropped year on year.
In the first three months of 2022, Netflix lost some 200,000 subscribers, according to a quarterly report released on Tuesday.
The number of paid subscriptions worldwide was 221.6 million at the end of the quarter. According to its own forecast, the company had expected an increase of 2.5 million customers.
Investors reacted strongly to the quarterly report, with stock initially falling by more than 20% in extended hours trading.
Netflix, among other things, blamed "macro factors" such as Russia's invasion of Ukraine for the disappointing results. The company suspended its service in Russia and wound down all Russian paid memberships, losing some 700,000 subscribers.
The company's revenue for the quarter fell short of expectations at 7.87 billion dollars, though it was a 9.9% increase from last year.
Profits fell by about 6% to 1.6 billion dollars compared to 1.71 billion dollars in last year's first quarter.
The markets reacted particularly badly to Netflix's projection that it would lose further subscribers in the current quarter due to increased competition in streaming from other platforms.