Shares of Netflix cratered more than 20% on Tuesday after the company reported a loss of 200,000 streaming video subscribers during the calendar first quarter.
Netflix previously told shareholders it expected to add 2.5 million net subscribers during the first quarter. Analysts predicted that number would be closer to 2.7 million. Either figure would have marked a significant downturn from the 3.98 million added during the same period in 2021.
Investors’ hyper focus on new paying customers led Netflix shares to plummet 20% after the company’s last earnings report in January. In addition to weaker-than-forecasted fourth-quarter subscriber gains, company executives quietly admitted that competition from other streaming platforms was having a negative impact on its growth.
MacDailyNews Take: Apple TV+ won Best Picture first, not Netflix.
It’ll be interesting to see how Netflix fares now that it finally has some real competition and when subscribers are being hit with record inflation, which, for some, necessitates cutbacks in discretionary income.
2.7 million expected vs. a loss of 200,000 is a wide miss, to say the least.
See also: British GQ: It’s time to start taking Apple TV+ seriously – April 8, 2022
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Netflix has gotten too expensive. If you want 4K you have to pick the most expensive subscription. Not so with Apple TV+ or Disney+. Netflix has some good movies and series but a multiple of that is just crap. I quit Netflix after the latest price increase.
They are more expensive, and they just raised the rate again, which would explain the downturn. On the flip side, I think Netflix has some of really good programming.
get woke go broke
If only it was universal…sigh…