Netflix logo|Stockcatalog|CC BY 2.0
Netflix shares deep-dived more than 25% in extended trading as the streaming service lost over 200k subscribers last quarter—the first major subscriber loss in more than a decade.
Netflix's withdrawal from Russia cost the company over 700,00 subscribers.
What went wrong?
Rampant password sharing and competition from other OTT platforms are the two main reasons for shrinking subscriptions.
The company estimates more than 100 million households do not pay for subscriptions and use password sharing.
What is Netflix going to do?
The OTT platform is already planning a global crackdown on the password sharing practice.
The company is mulling over providing subscriptions at lower costs featuring ads to increase revenue and attract viewers.
