Netflix reported slowing number of people signing up for the streaming service. Markets had expected more and shares fell 11% after the announcement. The company said a lack of new shows and COVID-19 production delays was part of the explanation. However, it is also a fact that competition on the home entertainment market has been increasing during the pandemic with households having more and more alternatives to market leader Netflix.
The company said it expects continued slow customer growth with an additional 1 million new customers in the second quarter compared to previously predicted 5 million.
About 3.98 million people signed up for Netflix between January and March, well below expected 6 million.
The company reported 15.8 million new subscribers last year with Asia representing 9.3 million of them, up 65% compared to 2019.
Talking about the market and the stiffer competition, CEO Reed Hastings was quoted by news agency AFP saying:
“We had those ten years where we were growing smooth as silk. It is just a little wobbly right now.”