According to reports, Netflix announced on Tuesday that as streaming competition intensified, the new crown pneumonia pandemic prevention measures were relaxed, and live sports programs reappeared on TV, Netflix had its lowest subscriber growth in four years.
In the quarter ended September 30, the company added 2.2 million paying users worldwide, which fell short of the 3.4 million target set by Wall Street and the company’s own expectations.
Earnings per share of $1.74 were also lower than analyst expectations. According to global financial market data and infrastructure provider Refinitiv’s IBES data, the market is generally expected to be US$2.14.
Netflix’s stock price fell nearly 6% to $494 in after-hours trading on Tuesday, and its stock was once one of the biggest winners during the COVID-19 pandemic.
“The number of domestic subscriptions is almost flat, highlighting the saturation of Netflix in the United States,” said Ross Benes, an analyst at eMarketer. He said that with the slowdown in domestic growth, income growth is likely to come from price increases.
The company reported that at the beginning of the global pandemic of the new crown pneumonia, the company achieved impressive quarterly results, adding 15.8 million paying customers from January to March.
Netflix has warned investors that with the relaxation of restrictions on the new crown epidemic, the sudden surge of new registered users will disappear in the second half of the year. Netflix predicts that the fourth quarter will attract 6 million new subscribers worldwide, which is lower than the 6.51 million expected by analysts.
Netflix is a pioneer in streaming video, and as viewers prefer online entertainment, the company is trying to win new customers and avoid competition. In the third quarter, Netflix released “Emily in Paris”, “Miss Holmes: The Missing Marquis” (Enola Holmes) and “The Devil All The Time” (The Devil All The Time).
Netflix admits that with the reorganization of major Hollywood studios such as Walt Disney Company and WarnerMedia to compete more directly for video subscribers, competition has intensified.
It is reported that Netflix said in a letter to shareholders: “The competition for consumer time and participation is still fierce.”
In recent months, major sports events including AT&T’s HBO Max (Note: On-demand video service platform provided by WarnerMedia) and Comcast (CMCSA.O) streaming media video service Peacock have resumed The streaming services of competitions and freshmen provide viewers with new choices.
Netflix said its performance reflects the fact that customers have surged at the beginning of this year.
“We believe that in the context of the long-term adoption of Internet entertainment, the quarterly fluctuations in the net increase in paying users are of little significance. We believe this is still too early. As we continue to improve our services, this will provide us with strong growth for many years to come. .”
Netflix said that it expects to complete the shooting of 150 works by the end of the year. Compared with 2020, the company will release more original shows every quarter in 2021.