Netflix shares a slide after the streaming service loses its subscriber purpose
Netflix added only 4 million subscribers in the first quarter, a sharp slowdown in profits caused by the pandemic last year when the U.S. began pulling out of the blockades.
At the end of March, it had 208 million customers worldwide, it said on Tuesday, losing its 210-meter natural orientation.
Netflix said it expected the second quarter to be slow, with an increase of 1 million subscribers and North America (which will drive roughly four “customer bases” in its largest market).
“We believe that the growth of paid partners has slowed due to Covid-19’s significant progress and lighter content in 2020 and the first half of this year and delays in Covid-19 production,” Netflix told shareholders, warning of the “uncertainty” in the results.
4m increase in subscribers in the first quarter of the same period 16 years ago compared to 16m in the first months of the year pandemic. It registered 37m new subscribers in 2020 overall.
The subscriber base was much larger Netflix revenues grew in the first quarter to cover operating expenses and content expenses as quickly as possible. Revenue rose 24% from the same period last year to $ 7.2 million, above analysts ’forecast of $ 7.1 million.
Net profit jumped $ 1.7 billion from $ 700 million a year ago, and was partly attributed to production delays associated with Covid, reducing costs.
In January, Netflix announced that it would not have to incur extra debt to cover the costs of producing its TV shows and movies.
Shares of Netflix fell more than 10 percent in overtime trading. Shares have risen just 2% this year, and are lower than the wider market, after rising more than 60 percent last year.
A key question for investors has been whether Netflix can maintain competitive leadership, including Disney, Apple and AT&T, and maintain strength while consumers seek entertainment outside of their homes.