Netflix shares dropped sharply as the markets opened Thursday, following a report that the streaming service’s new ad-supported tier isn’t pulling in the number of viewers promised, forcing it to allow advertisers to take money back.
The stock fell 5.3% to $300.95 after the opening bell.
Netflix shares closed Wednesday’s trading down 41% from the start of the year, nearly three times the decline in the S&P 500. The broader markets also slipped at the opening bell, with the S&P and Dow Jones Industrial Average both down about 1% and the tech-heavy Nasdaq down 1.3%.
Netflix’s latest slide followed a report by Digiday that said that said advertisers are getting money back for ads that have yet to run, and in some cases, Netflix has delivered only 80% of the expected audience.