UPDATE: Netflix stock slides 27% premarket and drags Disney, Roku, and Warner Bros. Discovery and Paramount lower with it

Netflix Inc. shares slumped 27% in premarket trade Wednesday after its first-quarter earnings showed the streaming giant losing customers for the first time since it was in its infancy, pulling rival streamers lower with it. Walt Disney Co. slid 5.1%, while Roku Inc. was down 6.8%. Warner Bros. Discovery Inc. was down 3.9%. Paramount Global was down 5%. Even Amazon.com Inc. , home to Prime Video, was down 0.7%. AT&T, home to HBO Max, was slightly higher. China’s Iqiyi Inc. was down 2.5%. The dual dangers of dwindling subscribers and deepening stock losses led Netflix executives to consider a crackdown on password sharing, and Co-Chief Executive Reed Hastings even went so far as to say that the company could offer a lower-priced subscription tier that includes commercials, a move he has resisted for years.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.