Disclaimer: We may earn a commission if you make any purchase by clicking our links. Please see our detailed guide here.

Follow us on:

Google News
Whatsapp

Netflix Sees Slowest Subscriber Growth Since 2015, Stock Tanks 20 Percent

IANS
IANS
Meet the voice behind Indo-Asian News Service (IANS), a storyteller navigating the currents of global events with precision and depth. Crafting narratives that bridge cultures, IANS brings you the pulse of the world in every word

Join the Opinion Leaders Network

Join the Techgenyz Opinion Leaders Network today and become part of a vibrant community of change-makers. Together, we can create a brighter future by shaping opinions, driving conversations, and transforming ideas into reality.

Despite producing global hits like ‘Squid Game’ in 2021, streaming giant Netflix saw slow growth in new subscribers in the fourth quarter last year — its slowest since 2015.

The streaming platform added 8.3 million paid subscribers as opposed to its projected 8.5 million.

Netflix now forecasts to add just 2.5 million subscribers in Q1 2022, down from 4 million last year.

The forecast and slow growth led to a nearly 20 percent fall in its stock at the close of trading on Thursday.

“We delivered 8.3 million paid net adds. So it was just a bit shy about tenth of a per cent of roughly 222 million paying members,” said Netflix Co-founder and Chairman Reed Hastings in an earnings call.

It is “definitely frustrating for us, the current slower growth”, he added.

Hastings said that overall, the business was healthy and retention was strong.

“But on the margin, we didn’t grow acquisition quite as fast as we would have liked to see on our large subscriber base. Our acquisition was growing, just not growing quite as fast as we were perhaps hoping or forecasting,” he admitted.

The company said that even in a world of uncertainty and increasing competition, “we’re optimistic about our long-term growth prospects as streaming supplants linear entertainment around the world”.

At $7.7 billion, the revenue in Q4 2021 grew 16 per cent (year over year) with a 9 per cent increase in average paid memberships.

“It’s a dynamic market for sure, it may not be as steady as people think about it in terms of we’re gonna add X number every quarter, every month, every week, but there’s no question that’s the direction the business is going in,” said co-CEO Ted Sarandos.

Join 10,000+ Fellow Readers

Get Techgenyz’s roundup delivered to your inbox curated with the most important for you that keeps you updated about the future tech, mobile, space, gaming, business and more.

Recomended

Partner With Us

Digital advertising offers a way for your business to reach out and make much-needed connections with your audience in a meaningful way. Advertising on Techgenyz will help you build brand awareness, increase website traffic, generate qualified leads, and grow your business.

Power Your Business

Solutions you need to super charge your business and drive growth

More from this topic