Netflix Inc. was the worst performing stock among the S&P​ 500 this week after freefalling 35% on Thursday after estimating it would lose 2 million subscribers during the second quarter. The stock followed up Thursday’s loss with another 2% loss on Friday, ending the week with a 27% decline.

“Fellow streaming stocks Roku, Spotify, and Disney also tumbled in the after-hours after Netflix’s brutal update,” as NBC reported.

With the closing of the second quarter, Netflix is expected to lose 2 million global subscribers. In a letter to shareholders on Tuesday, the company said their content is still popular but faces tough competition. It also mentioned the company cutting off its paid 700,000 membership in Russia due to the heavy drop in global subscribers.

The company also wrote, “Our revenue growth has slowed considerably. Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration, when including the large number of households sharing accounts, combined with competition, is creating revenue growth headwinds.”

That admission comes after it reportedly told shareholders the company’s subscriber base would grow by 2.5 million in the first quarter, with analysts predicting it closer to 2.7 million.

The situation has become so dire that Netflix Co-CEO Reed Hastings said the platform may shift to offering “lower-priced, ad-supported tiers as a means to bring new subscribers after years of resisting advertisements on the platform.”

Netflix contributes significantly to America’s economy with their 209 million paying subscribers. Therefore, it is important for Netflix to uphold their standard to keep paying subscribers happy, thus impacting positively to the economy.

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