Netflix’s dominance in the streaming space is beginning to show its first cracks. The company admitted on Wednesday it had managed to lose 126,000 U.S. paid subscribers, its first loss since 2011.
Analysts are shocked because they expected a 352,000 gain. Netflix also failed to meet its forecast for global subscriber growth by 2.3 million.
Shares plunged 10% as a result, with the streaming giant losing $17 billion in value today. Netflix blames its failure on recent price hikes and an inadequate content slate.
Netflix said it will have a more robust content slate in the third quarter to attract more subscribers, forecasting 7 million paid net adds and revenue of $5.25 billion. The company said its TV show “Stranger Things” has already had strong viewership for its latest season, and it anticipates new seasons of “The Crown” and “Orange is the New Black” will be similarly popular.