San Ramon, CA (AP) — Netflix achieved the latest quarter of disappointing subscriber growth in the last three months of last year.
The Los Gatos, Calif. Company added 8.3 million subscribers worldwide between October and December. This is about 200,000 less than management predicts. According to FactSet Research, Netflix announced its fourth-quarter results on Thursday and predicted an increase of 2.5 million subscribers in the first three months of the year. This is well below analysts’ expectations of an increase of 4 million.
The unfortunate news is that Netflix’s share price has plummeted by more than 19% in extended trading after the numbers were released, deepening its sharp decline in the last two months.
Netflix ended the difficult year after making spectacular profits during the 2020 pandemic blockade and driving returnees to its service.
Netflix gained 18.2 million subscribers worldwide in 2021 and had the slowest annual growth rate in five years. After Netflix gained more than 36 million subscribers in 2020, the service boasts nearly 222 million subscribers worldwide, surpassing other video streaming readers.
However, other services backed by well-financed rivals such as Walt Disney Co. and Apple have become widespread in recent years, and other network swarms have also turned to video streaming in an attempt to win a spotlight and part of their household budget. We are entering the market. Intensifying competition is one of the reasons Netflix decided to expand to video games last year.
Netflix acknowledged that the competition had a “slight” impact on the growth of its quarterly shareholder letter, but emphasized that the service is still thriving in all countries where it is available.
However, investors are worried that Netflix’s popularity is nearing its peak. These concerns have caused Netflix’s share price to plummet by more than 30% from its peak of around $ 700, which reached mid-November.
In Netflix’s largest markets, the United States and Canada, future growth opportunities have become particularly difficult, and most households interested in subscribing to the service are beginning to appear to already have an account. Netflix gained 75.2 million subscribers in the United States and Canada in 2021 and 1.3 million subscribers in the region in just one year.
Last week, Netflix raised prices by about 10% in the US and Canada. This can cause some subscribers to cancel the service based on the past history of previous price increases.
Conversely, Friday’s Netflix announces the fourth season of “Welcome to Ozark,” which is one of the most popular series and can attract new subscribers.
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Netflix’s share price plummets as subscriber growth concerns grow | WGN Radio 720
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