Netflix just released their earnings report, and it’s not looking super good. They missed the mark on some numbers, recording the slowest subscriber growth in nearly a decade.
Miss the mark? how?
Netflix’s revenue and subscriber growth still beat Wall Street’s expectations. But the following numbers did disappoint investors.
- Subscriber added 1.5 mln. Profit growth was also slower because of this.
- It expects to add 3.5 mln new subscribers next quarter… sounds fair but still 40% lower than investors’ projection.
Not only the slower growth… Netflix even lost 400k domestic subscribers in North America, the first time in two years.
Losing subscribers? That’s serious… but why?
Netflix thinks we should blame the pandemic ① It led to abnormal fast growth last year, so losing the momentum this year ② It also delayed many new shows which are supposed to be there in the first half.
- But more shows will come soon: including The Witcher, La Casa de Papel, Don’t Look Up… JP Morgan described this as the “strongest six-month content slate ever”. I am looking forward to that.
How about games? Remember the previous guess of entering into video games? Netflix also confirmed that. The exciting thing is, it will be free to all existing subscribers!
Netflix’s share price fell as much as 4.8% overnight, its worst stock decline in three months. Seems that the upcoming new shows still cannot compensate for investors’ disappointment.