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.
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.
Netflix absorbed its big blow since losing 800,000 subscribers in 2011 - the result of unveiled plans to begin charging separately for its then-nascent streaming service, which had been bundled for free with its traditional DVD-by-mail service.
The latest subscriber loss was far worse than a forecast by Netflix management for a conservative gain of 2.5 million subscribers.
To stop the practice and prod more people to pay for their own accounts, Netflix indicated it will expand a test introduced last month in Chile, Peru and Costa Rica that allows subscribers to add up to two people living outside their households to their accounts for an additional fee.
Netflix ended March with 221.6 million worldwide subscribers.
