On Thursday, Netflix released its results for the final quarter of 2021. Although its revenue has grown, there was a huge drop in subscriber base, when compared with forecasts. The company saw its shares plunge by 20 percent and this is the biggest drop in share price since June 2020, according to a report by CNBC.
Last quarter, the largest streaming platform in the world had predicted that it would have 222.06 million paid subscriptions by the end of 2021. Instead, Netflix reported that it had added 221.84 members. It also said that it estimated low growth in the next quarter. It is expected to add 2.5 million subscribers in the first quarter of 2022. In comparison, it had added 4 million subscribers in the first quarter of 2021.
Thursday’s report also revealed that its revenue grew by 16 percent and its paid memberships have also risen by 9 percent, year-on-year. The company said that its “acquisition growth has not yet re-accelerated to pre-Covid levels.”
Curiously, the company report did not mention its recent price hike in both the U.S. and Canada. However, it mentioned its new Play Something Feature that it said had added value to its users.
Netflix did not dwell on competition, although there are several streaming platforms now available for viewers. Billions of dollars are being invested by the newer streaming platforms for original content.
Netflix premiered its two most-viewed films ever: Red Notice and Don’t Look Up, in this quarter. Yet, it has not reached its estimated growth. Perhaps, it is time that the streaming platform looks into growth and additional signups as there is a lot of competition right in front of it and not around the corner.
