Stock prices of popular video streaming platforms fell sharply following the release of Netflix's latest quarterly earnings. News of Netflix's declining subscribers, which is a first for the company in more than a decade, reduced investors' confidence in the segment, causing the fall of the price of related stocks.

Roku and Paramount's stock prices fell by nearly 6% each. Disney's stock price fell by 5%, while Warner Bros Discovery fell by 4%. The drop in the stocks highlighted the growing fears over the declining interest in streaming services due to the slowdown of consumer spending.

Following the release of its earnings report, which revealed that the company had lost more than 200,000 subscribers over its latest quarter, Netflix's stock price fell by more than 25%. Apart from the drop in its subscribers, Netflix also estimated that it might stand to lose an additional 2 million subscribers during its second quarter.

Netflix's shares fell to their lowest level since November 2019 on Tuesday. The stock is currently down more than 40% for the year and more than 60% from its all-time high in November 2021. Netflix last reported a decline in subscribers in October 2011. Currently, the company still has over 220 million subscribers worldwide.

The pandemic helped Netflix and other streaming services grow at unprecedented levels as people spent more time and money consuming content from home. However, as global economies slowly recover and people spend more time outside of their homes, it's almost as if the pandemic never happened - at least in terms of Netflix stock prices.

The decline in its subscribers occurred after the company boosted pricing in major regions such as the United States and the United Kingdom. The company also attributed the loss to its recent exit from Russia.

Netflix said it lost 700,000 members as a result of its decision to leave Russia following the war in Ukraine. The company said it lost another 600,000 customers in the United States and Canada after it implemented its price hike. Despite the cancellations, Netflix claimed that its decisions were "in line with expectations" and would result in greater revenue down the road.

Netflix also issued a warning that it would start cracking down on password sharing, which might lead to an increase in paying members. During Netflix's meteoric rise, it enabled its 222 million users to exchange account information with friends and family, but now it wants all users to pay. It is estimated that over 100 million homes are violating its regulations by exchanging passwords.