Netflix shares plunge amid fears coronavirus boom is overon April 21, 2021 at 3:05 am

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

Netflix said the pandemic disrupted its production pipeline and has forecast fewer new subscribers.

Netflix logo with Netflix on phone

image copyrightGetty Images

Video-streaming giant Netflix has reported a slowdown in subscriber growth, sending its shares tumbling.

About 3.98 million people signed up for Netflix between January and March, well short of the projected 6 million.

The company said a lack of new shows may have contributed to the shortfall, adding that it expected this to recover as sequels to hit shows are released.

Netflix shares fell 11% in after-hours trading to $489.28, wiping $25bn off the company’s market capitalization.

The streaming service added 15.8 million new subscribers last year as Covid-19 forced people around the world to stay home.

Much of that growth came in Asia, where Netflix added 9.3 million new subscribers in 2020, an increase of about 65% over the previous year.

But the pandemic has proven a double-edged sword for Netflix, because it also disrupted its production pipeline.

“These dynamics are also contributing to a lighter content slate in the first half of 2021, and hence, we believe slower membership growth,” the company said in its quarterly letter to shareholders.

The company projected poor customer growth ahead, with an additional 1 million new streaming customers in the second quarter, far short of the previously predicted 5 million.

Netflix also faces increasingly stiff competition from new streaming services entering the market.

Disney+, a much newer streaming service, already has 100 million subscribers, compared with Netflix’s 207.6 million.

Even with sluggish customer growth, Netflix has reported revenues of $7.16bn and net income of $1.71bn.

Netflix predicted stronger growth in the second half of the year when it releases new seasons of “You,” “Money Heist,” “The Witcher” and action movie “Red Notice,” among other titles.

“We had those ten years where we were growing smooth as silk,” Netflix chief executive Reed Hastings said on a streamed earnings call, according to an AFP report.

“It is just a little wobbly right now.”

- Advertisement -

Discover

Sponsor

Latest

Ukraine: Russian forces appear to shoot at civilians trying to escapeon March 26, 2022 at 12:17 am

Video captured by a Ukrainian aerial reconnaissance group appears to show Russian forces shooting at civilians who are trying to flee the conflict zone....

Liverpool 2-0 Villarreal: Jurgen Klopp’s Reds take control of Champions League semion April 27, 2022 at 9:07 pm

Liverpool take control of their Champions League semi-final with Villarreal with a deserved first-leg win at Anfield.

Travis King: Soldier who fled to North Korea ‘charged back in US’on October 20, 2023 at 6:05 am

Charges against Travis King reportedly include desertion and possessing sexual images of a child.Image source, ReutersBy George WrightBBC NewsUS soldier Travis King, who fled...

I miss bread, says girl, as Gaza food crisis mountson February 21, 2024 at 5:53 pm

Footage shows desperation as crowds rush to aid deliveries.The World Food Programme has paused food deliveries to northern Gaza, noting "complete chaos and violence...

China seeks ‘bold’ steps to lift birth rateon February 10, 2023 at 11:21 am

China's birth rate is at a record low, with officials identifying the cost of childcare as a major issue.Image source, Future PublishingBy Joel Guinto...