Shares of Netflix fell more than 25% on Tuesday after the report for the first quarter, when the company lost more than 200,000 paid subscribers, the first such case in a decade, writes CNBC.

The reasons for this negative development for the streaming service were, it said, increased activity of competitors, sharing of the same passwords by subscribers, as well as inflation and the ongoing conflict in Ukraine. At the same time, the company predicted that things will only get worse from here and it will lose 3 million paying subscribers globally in the second quarter.

The company’s stock fell more than 25% in the hours following the report. Shares of other streaming companies – Roku, Spotify and Disney – also fell after Netflix’s report.

The last time Netflix lost subscribers was in October 2011.

According to Netflix, “Streaming is beating linear, as we predicted, and the Netflix brand is very popular around the world. However, our relatively high household penetration, given the large number of households with shared accounts, combined with competition, creates a barrier to revenue growth.”

Note that Netflix previously told shareholders that it plans to add 2.5 million net subscribers in the first quarter. Analysts, however, had predicted that the number would be closer to 2.7 million. During the same period a year ago, Netflix added 3.98 million paying users. However, in reality, things turned out differently this year.

In terms of numbers, earnings per share were $3.53 versus $2.89, according to a survey of analysts by Refinitiv.

Revenue was $7.87 billion versus $7.93 billion, according to a survey of Refinitiv analysts.

There was no global increase in paid subscribers, there was a loss of 200k versus an expected 2.73 million, according to StreetAccount estimates. Net income for the quarter ended March 31 fell 6.4% to $1.6 billion, down from $1.7 billion a year earlier. The company’s free cash flow for the quarter was $802 million, down from $692 million a year earlier.

The suspension of Netflix’s operations in Russia and the winding down of its paid membership program in Russia resulted in the loss of 700,000 subscribers.

Previously, Netflix was a winner in the pandemic era, when COVID-19 quarantine caused families to stay home and seek out affordable entertainment. But now that the pandemic is behind it, its prospects are dimmed and it is experiencing a downturn as people return to more familiar activities outside the home.

In an effort to continue its presence in the market, Netflix has increased spending on content, especially originals, and raised the prices of its services. The price changes will help boost revenue, but partly led to the loss of 600,000 subscribers in the U.S. and Canada in the last quarter.