Monday, May 17, 2021
Home News Reports Netflix stock dips due to a dramatic slowdown in subscriber addition, company blames production...

Netflix stock dips due to a dramatic slowdown in subscriber addition, company blames production delays due to Covid-19

Netflix added 3.98 million new global subscribers last quarter, a far cry from the 6.2 million additions anticipated by Wall Street analysts

The video-streaming platform Netflix saw its shares fall as much as 11% in after-hours trading yesterday after reporting only 3.98 million new global subscribers last quarter, a far cry from the 6.2 million additions anticipated by Wall Street analysts. The company also said that it expects only 1 million new subscribers over the next quarter.

Netflix has blamed this slowdown in subscribers on the Coronavirus pandemic, attributing the production delays of its big-ticket movies and TV shows to COVID-19.

“We believe paid membership growth slowed due to the big Covid-19 pull forward in 2020 and a lighter content slate in the first half of this year, due to Covid-19 production delays,” said Netflix in a letter to its shareholders.

Analysts believe that Netflix is facing increasing competition in the video streaming market, especially in the U.S., with Disney’s Disney+ and Hulu, AT&T’s HBO Max, Apple TV+, Amazon Prime, and Comcast NBCUniversal’s Peacock all competing for subscribers. However, the company has denied this factor in its report, saying that it doesn’t believe competition played a factor in the below-par subscriber numbers.

“We don’t believe competitive intensity materially changed in the quarter or was a material factor in the variance as the over-forecast was across all of our regions,” said Netflix.

The streaming giant expects to bounce back in the second half of 2021, with content delayed due to Covid-19 delays slated to return.

“As we’ve noted previously, the production delays from Covid-19 in 2020 will lead to a 2021 slate that is more heavily second-half weighted with a large number of returning franchises,” the company added.

The company said that production has resumed and running in nearly all of its major markets. Netflix said that it expects to spend more than $17 billion in cash on content this year.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

From ‘lagbhag mana’ to putting up poster by AAP leader as DP to attack PM Modi, things have come a long way for Rahul...

Earlier in the day, Rahul Gandhi had put up the poster and urged PM Modi to arrest him. It is imperative to note here that Rahul Gandhi himself is out on bail in the National Herald corruption case as well as many other cases.

‘F*ck the Jews’, ‘F*ck their daughters, mothers’: Viral video from London shows pro-Palestine protesters advocating rape of Jewish women

A video has gone viral on the internet that purportedly shows pro-Palestine demonstrators abusing Jews in the vilest of words.

Malerkotla: All you need to know about the 23rd district of Punjab with a Muslim-majority population

Muslim appeasement at display? Congress-led Punjab government announced Muslim-dominating Malerkotla as district

Understanding Cytokine Storm: What it is and how it may be responsible for Covid-19 related deaths

Cytokine Storm happens when the body releases too many Cytokine, it leads to immune system attacking own body cells

Rakesh Tikait threatens to defeat BJP in Uttar Pradesh where assembly elections are slated for next year

The 'apolitical' farmer movement has been nothing but political from the beginning.

Far-left and Congress trolls display ignorance while targeting PM Modi, misinterpret data to claim Rupee weakening against Bangladeshi Taka

As the value of 1 Rupee is equal to 1.16 Bangladeshi Taka, trolls assumed Rupee is weak against Taka and targeted PM Modi

Recently Popular

Legendary Australian cricketer slams world media for ‘vulture’ journalism, says Incredible India deserves respect: Here is what he said

In a recent post, the former cricketer has expressed his overwhelming support for India and slammed international media for vulture journalism

How NDTV played with words to give impression that Kerala woman died due to Israel, deleted and reposted, but still did not mention Palestine

NDTV subtly peddled an agenda trying to paint Israel as the aggressors and Palestine as the victim after a Indian woman died in terror attacks

Former pornstar Mia Khalifa falls for ‘toolkit’ again? Posts unedited tweet against Israel, later defends herself with bizarre explanation

Former porn-star Mia Khalifa accidentally revealed being part of an anti-Israel Twitter storm after she tweeted an unedited post

Charlie Hebdo cartoon mocking Hindu deities for Covid-19 crisis turns out to be fake? Here’s what we know

Some social media users pointed out the hypocrisy of these 'left-liberals', who were just a few months back attacking the same French magazine for publishing cartoons that were allegedly hurtful for Muslims.

Jerusalem conflict: The history of Al-Aqsa Mosque on Temple Mount and the holiest Jewish temple that preceded it

The Al-Aqsa Mosque and the Dome of the Rock was built on the same spot where the Second Temple of the Judaism was located

Israel demolishes Al Jalaa building that housed Al Jazeera and other international media offices short time after warning

Israel had issued a warning that it will demolish the Al Jalaa building that houses Al Jazeera office, after which it was demolished.
- Advertisement -

 

Connect with us

255,110FansLike
544,844FollowersFollow
24,300SubscribersSubscribe