In the last quarter of 2021, 8.3 million new subscribers joined Netflix, as increased competition saw the streaming leader slightly miss its own projections of 8.5 million.
But it was their forecast for the current quarter, for which it predicted only 2.5 million new subs, than saw Netflix shares fall 16 per cent in after-hours trading.
Netflix current paid global susbscriber base sits at an impressive 221.8 million, figures that leapt during the start of the pandemic, as home entertainment options were at a premium. But increased competition has seen this growth slow; for comparison, in the first quarter of 2021, Netflix added 4 million new subs.
Netflix explains the current quarter slowdown by explaining a number of big programs, such as season two of Bridgeton, don’t return until late March.
“In addition, while retention and engagement remain healthy, acquisition growth has not yet reaccelerated to pre-Covid levels,” Netflix said in its letter to shareholders.
The company also increased its prices last week, for the first time since 2020 – never a popular move for luring potential subscribers.
Revenue rose 16 per cent during the December quarter, in line with projections of $7.71 billion,