Following the announcement of Netflix’s latest quarterly earnings, the stock prices of its video streaming provider rivals plummeted. The news that Netflix’s subscriber base is dropping, a first for the company in more than a decade, has lowered investor confidence in the sector.

Roku and Paramount both saw their stock values drop by roughly 6%. The stock price of Disney dropped 5%, while Warner Bros Discovery dropped 4%. The stock market’s decline reflected mounting concerns about dwindling interest in streaming services as a result of sluggish consumer spending worldwide.

Netflix’s stock price dropped by more than 25% following the release of its earnings report, which indicated that it had lost more than 200,000 subscribers in the most recent quarter. Aside from the reduction in subscribers, Netflix expects to lose another 2 million members in the second quarter.

Netflix’s stock plummeted to its lowest level since November 2019. The stock is down more than 40% this year and is down more than 60% from its all-time high in November 2021. The last time Netflix announced a drop in subscribers was in October 2011. Currently, Netflix has more than 220 million members globally.

After raising pricing in key markets, including the United States and the United Kingdom, the company saw a significant drop in customers. The loss was also partly related to the company’s recent pullout from Russia.

Following the crisis in Ukraine, Netflix estimated it lost 700,000 subscribers as a result of its decision to leave Russia. Following the price increase, the business stated it lost another 600,000 subscribers in the United States and Canada. Despite the cancellations, Netflix stated that the move was in line with its long-term plans and that it would lead to greater profit in the future.