Netflix Inc. said the slower pace of TV and movie production during the pandemic hit new subscribers in the first quarter of the year.
About 3,98 million people signed up for Netflix from January to March. Netflix estimates that just 1 million new streaming customers will be added in the second quarter of the year. Analysts had expected a forecast of about 4,8 million.
Netflix said it did not believe the competition affected the new subscriptions to the platform.
The company predicted that enrollment would increase in the second half of the year, due to the release of "You," "Money Heist", "The Witcher" and the action movie "Red Notice".
A year ago, Netflix reached a record 15,8 million customers as a pandemic forced people around the world to stay home. The company said, however, that the pandemic prevented the filming of new series / movies.
Analysts say that this year people will spend less time streaming as COVID-19 vaccinations spread and more and more people leave their homes.
Competing companies are spending billions to compete with Netflix. Walt Disney Co. Disney + reached 100 million subscribers in March. Netflix's total streaming customers totaled 207,6 million at the end of March. Netflix said it did not believe the competition affected the new subscriptions to its platform.
Netflix's share of new U.S. subscribers fell to 8,5% during the quarter, from 16,2% in the same period a year ago, according to Kantar Media.
During the first quarter, Netflix lost one of its most popular titles, "The Office."
New customers rose to 1,8 million in Europe, 1,36 million in Asia and 360.000 in Latin America.
"What was not expected was a slowdown in international markets, where competition is significantly lower," said eMarketer analyst Eric Haggstrom.
Source of information: tech.hindustantimes.com