Netflix Q4’s results beat both the top and bottom lines, but shares fell nearly 20% on slowing subscriber growth, according to a press release by Netflix on Thursday.
- Netflix added 8.28 global paid net subscribers in the fourth quarter. Analysts had projected the company to add 8.19 million subscribers. But the figure is fewer than the 8.5 million subscribers added in Q4 2020.
- The streamer stated that they expect to add 2.5 million subscribers during the first quarter of 2020, way below the 3.98 million it added in Q1 2021.
- Netflix stated it plans for an additional back-end weighted content slate in Q1, with big premieres scheduled for March.
- Netflix noted that increased competition from other companies was a major reason for the slowdown, even though in the past companies like Apple and Disney did not have a material impact on growth.
Netflix’s strategy is to increase prices as customers become more entrenched in the company’s exclusive content. Price increases could offset the slowing customer growth. NFLX down -19.13, Pre-market trading