After the bell on Thursday, Netflix released fourth-quarter results. The streamer outperformed on both the high and low sides, however shares fell more than 20% in after-hours trading due to slowing subscriber growth.
In the fourth quarter, Netflix added 8.28 million paid net subscribers around the world. Analysts had predicted that Netflix would add 8.19 million subscribers, according to StreetAccount projections. But that’s fewer than the 8.5 million subscribers Netflix added in Q4 2020, the same number it predicted for Q4 2021, and its outlook was
RELATED POST: Squid Game WILL GET A Second Season, According To Netflix Co-CEOs.
During the first quarter of 2022, Netflix predicts it will add just 2.5 million new subscribers, far below the 3.98 million it added in the same period last year. Meanwhile, StreetAccount predictions had predicted 6.93 million additions in the first quarter.
Netflix’s original programming slate is expected to shift more toward the back-end in the first quarter, with major debuts planned for March.
That’s similar to the picture Netflix had just painted for Q4. When Netflix presented new TV episodes and films that had been pushed back to the end of the year, analysts and investors expected a substantial increase in customers at the end of 2021.
For example, Netflix released popular high-performing titles such as “Emily in Paris,” “Don’t Look Up,” “Red Notice” and “You.”
One reason for the slowdown, according to Netflix, is that it faces greater competition from other firms. In the past, however, it claimed that rivals like as Apple and Disney would have a minimal impact on expansion.
“Consumers have had a lot of alternatives when it comes to their entertainment time for quite some time now – competition that has only increased in the last 24 months, as entertainment firms all around the world create their own streaming services.” Netflix added.
“While this additional competition has slowed our overall growth, we continue to expand in every country and region where these new streaming alternatives have been introduced.”
Netflix, in an effort to attract the 800 million to 900 million households that use either broadband internet or pay-TV, admitted it is still early days when it comes to reaching that number.
“It’s certainly maddening for us, the present slower growth,” co-CEO Reed Hastings said during a pre-taped earnings call. In the fourth quarter of 2013, Netflix reported 222 million paid memberships.
“It’s a fast-changing market, and it’s not as steady as people think in terms of we’ll add X number every quarter, every month, or every week, but there’s no doubt that the company is heading that way,” co-CEO Ted Sarandos said.
Last week, Netflix said it would raise prices in the United States and Canada. In the United States, the basic plan’s monthly price increased from $9.99 to $9.99, while the standard plan increased from $13.99 to $15.49 and the premium plan increased from $17.99 to $19.99.
Netflix is boosting prices in order to entice more people to sign up. The company’s goal is to increase prices as consumers become more entrenched in its exclusive material. Price increases might assist to offset declining customer growth.
Netflix also revealed new information on its gaming expansion. The firm has been offering subscribers with games based on its popular titles. The new games may provide the company insight into which characters are most popular, which might help it create better entertainment in the future.
To get more related content related to Entertainment, Technology, Windows Fixes, Do Follow Tremblzer.