Netflix Inc said the slower pace of TV show and movie production during the pandemic hit new subscriber growth in the first quarter of the year.
About 3.98 million people signed up for Netflix from January to March. Netflix estimates it will add just 1 million new streaming customers in the second quarter of the year. Analysts had expected about 4.8 million.
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Netflix said it did not believe the competition affected new subscriptions to the platform.
The company predicted that subscriptions would increase in the second half of the year, due to the release of “You,” “Money Heist,” “The Witcher” and the action film “Red Notice.”.
A year ago, Netflix hit a record 15.8 million subscribers as the pandemic forced people around the world to stay home. However, the company said the pandemic had prevented the filming of new series/movies.
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Analysts say people will spend less time streaming this year as COVID-19 vaccinations spread and more people leave their homes.
Rivals are spending billions to compete with Netflix. Walt Disney Co’s Disney+ reached 100 million subscribers in March. Netflix’s total streaming customers stood at 207.6 million at the end of March. Netflix said it does not believe the competition has affected new sign-ups on its platform.
Netflix's share of new U.S. subscribers fell to 8.5% during the quarter, down from 16.2% in the same period a year ago, Kantar Media reports.
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During the first quarter, Netflix lost one of its most popular titles, “The Office.”.
New customers amounted to 1.8 million in Europe, 1.36 million in Asia and 360,000 in Latin America.
“What was not expected was the slowdown in international markets, where competition is significantly lower,” said eMarketer analyst Eric Haggstrom.
Information source: tech.hindustantimes.com
