The Associated Press
ap photo
This Aug. 13, 2020 photo shows a logo for Netflix on a remote control in Portland, Ore. Netflix’s rapid subscriber growth is slowing far faster than anticipated
SAN RAMON, Calif. Netflix’s pandemic-fueled subscriber growth is slowing far faster than anticipated as people who have been cooped at home are able to get out and do other things again.
The video-streaming service added 4 million more worldwide subscribers from January through March, its smallest gain during that three-month period in four years.
The performance reported Tuesday was about 2 million fewer subscribers than both management and analysts had predicted Netflix would add during the first quarter.
Netflix Falls After Pandemic Boom Reverses to Rare Weakness
Bloomberg 5 hrs ago Lucas Shaw
(Bloomberg) Netflix Inc. credited the pandemic with delivering record growth in 2020. Now it’s blaming the pandemic for the worst first quarter in eight years.
The streaming service added far fewer new customers than Wall Street expected in the first three months of 2021, even missing its own forecast by millions of subscribers. And the current quarter will be more challenging, Netflix said Tuesday, predicting a gain of just 1 million new customers or a fraction of the 4.44 million projected by analysts.
The dismal growth sent Netflix shares down as much as 8.4% in New York trading on Wednesday. They were off 7.5% to $508.24 at 9:57 a.m.
The streaming service added far fewer new customers than Wall Street expected in the first three months of 2021, even missing its own forecast by millions of subscribers. And the current quarter will be more challenging, Netflix said Tuesday, predicting a gain of just 1 million new customers or a fraction of the 4.44 million projected by analysts. The dismal growth sent its shares plunging as much as 13%.
Netflix has been warning for months that growth would slow after customers emerged from their Covid-19 hibernation, but few expected the company to stall so dramatically. The first quarter of 2020 was the strongest in its history, reeling in 15.8 million new customers, and Netflix’s pace was still brisk in the fourth quarter.
Netflix finally learns the oldest rule in Hollywood: Hits matter
[Photos: Sony Pictures Animation (
Knives Out); Sony Pictures Entertainment (
Venom)]
advertisement
advertisement
Netflix is dramatically upping its content spend in 2021 to $17 billion signaling that it will be making more bets on big movies and TV shows as it fights to fend off competitors like Disney Plus and HBO Max. While the latter have built-in access to popular franchises like
Star Wars and
Wonder Woman due to their Hollywood studio parents, Netflix has had to buy its way into the franchise business. It recently made a deal with Sony to become the streaming home to Marvel films such as
Netflix s subscriber growth slows as Americans take a break from their screens
April 21, 2021 / 11:55 AM / AP
Netflix s coronavirus-fueled subscriber growth is slowing far faster than anticipated as people who have been cooped up at home are able to embrace other diversions besides watching streaming videos.
The company added 4 million more worldwide subscribers from January through March, its smallest gain during that three-month period in four years. The performance reported Tuesday was about 2 million fewer subscribers than both management and Wall Street analysts had predicted Netflix would add during the first quarter.
It marked a huge comedown from the same time last year when Netflix added nearly 16 million subscribers. That came just as governments around the world imposed lockdowns that created a huge captive audience for the leading video-streaming service.