Netflix turns to adverts as subscriber slump sends shares crashing

Good morning. 

Netflix is tearing up all its old rules after a disastrous set of quarterly results cast doubts over its future prospects.

The streaming giant said it lost 200,000 subscribers in the first three months of the year – its first decline in more than a decade.

While its withdrawal from Russia led to the loss of 700,000 customers, it projected another loss of 2m subscribers in the three months to the end of June, fuelling concerns it may already have seen its best days.

Shares in Netflix plunged 25pc last night. If the decline continues today, the company will have lost about half its value so far this year, wiping out around $150bn (£115bn) in shareholder wealth in less than four months.

5 things to start your day 

1) Europe pays the price for its Russian gas addiction – but the worst is yet to come  Fresh forecasts from the IMF lay bare the economic blow to be dealt to the region due to its reliance on Russian energy

2) Netflix loses subscribers for first time in a decade as cost of living bites  Streaming giant posts dire prediction for second quarter sending shares down 26pc

3) Bulb Energy boss still being paid £250,000 after taxpayer bailout  Hayden Wood keeps salary following company’s rescue with £1.7bn of public money 

4) Britain to suffer weakest growth in G7 as Sunak’s tax raid bites  IMF warns that UK will lag behind major rivals next year

5) Great British Rail Sale: Everything you need to know  Where you can go, how to book tickets and how long the sale will last

What happened overnight 

Asian markets were largely flat on Wednesday morning. In Tokyo, the Nikkei 225 opened slightly higher, buoyed by a cheaper yen, but the Hang Seng Index in Hong Kong was marginally lower after being battered by China growth concerns and Beijing’s crackdown on the tech sector on Tuesday. Shanghai and Seoul were also down while Sydney, Jakarta, and Taipei were inching upward.

Coming up today

• Corporate: Oxford Biomedica, Wood Group (full-year results); Bunzl, Carr’s Group, Centamin, CRH, Hunting, IntegraFin Holdings, Naked Wines, Petra Diamonds, Rio Tinto, QinetiQ Group, Quilter (trading statements)
• Economics: People’s Bank of China interest rate decision (China), industrial production (EU), trade balance (EU)