Netflix, the online TV series and movie platform, announced that the expected increase in the number of subscribers could not be achieved with the relaxation of Covid restrictions worldwide.
Netflix, which is expected to enroll 6.2 million new subscribers in the first quarter of 2021, which covers the months between January and March, fell short of expectations and reported 3.98 million subscribers during this period.
The company’s shares also fell 11 percent after the information was released, to $ 489.28, while the market value of the company decreased by $ 25 billion.
THE MOST INCREASE IN ASIA
While the platform gained 15.8 million new members due to people staying at their homes due to the Covid-19 pandemic last year, it was reported that the highest growth in 2020 was in the Asian continent with 9.3 million members.
Netflix CEO Reed Hastings said, “Pandemic dynamics contributed to a weaker content list in the first half of 2021, and therefore we predict slower membership growth,” said Netflix CEO Reed Hastings.
LACK OF NEW PROGRAM HAS BEEN EFFECTIVE
The company stated that the shortage of new programs may have contributed to the increase in the number of members, and that the increase in the number of members will continue as new programs are added.
The company also said it expects to add about 1 million subscribers in the second quarter of 2021.
Netflix is also facing increasing competition due to new streaming services entering the market. Disney +, a much more recent streaming service, has already reached 100 million subscribers compared to Netflix’s 207.6 million subscribers.
‘NOW WE ARE VIBRATING SOMEWHERE’
Despite the decline in subscriber growth, Netflix reported revenue of $ 7.16 billion for 2020, while net revenue was $ 1.71 billion.
Netflix CEO Reed Hastings, in his article in which he announced his 2020 earnings, said, “We have had a decade of growing as smooth as silk” and said, “We are just shaking a little now.”