Netflix is ​​growing slower than ever

by time news

Dhe streaming giant Netflix attracted fewer new users with its series and films in the second quarter than ever before in a quarter. In the three months to the end of June, the global number of subscribers only increased by 1.5 million to a total of a good 209 million, as the company announced on Tuesday after the US market closed. The forecast for the current quarter was also relatively meager with 3.5 million new customers. The streaming market leader is under pressure in the face of increased competition and now wants to expand into new markets.

Netflix boss Reed Hastings does not believe that people will lose interest in streaming after the pandemic. “The growth story remains intact, at least for the next few years,” he said in a video interview after the quarterly report was presented. Hastings is also not afraid of streaming competitors such as Hollywood giant Walt Disney and other financially strong rivals such as WarnerMedia with the popular pay channel HBO (“Game of Thrones”) or Amazon, who want to strengthen themselves through mergers and acquisitions. “We don’t see any major headwinds from new streaming competitors.”

No comparison to the Corona year 2020

Netflix was also able to score points with some productions in the past quarter. For example, the second season of the French crook series “Lupine” was a hit that was accessed by 54 million user accounts in the first week alone. Such successes pale in comparison to the streaming boom triggered by the Corona crisis in 2020. In the same period last year, when many people were stuck at home due to a pandemic, there was a real rush on Netflix. In the first half of 2020, the company recorded rapid growth of over 25 million new users.

READ Also:  From skiing to weddings, the measures of the Sostegni decree to save the economy

Analysts disappointed

The pandemic has led to an unusual distortion of the numbers, wrote Netflix in a letter to shareholders. On the other hand, financially speaking, the quarter went far better than a year ago. Net income rose nearly 90 percent to $ 1.4 billion and revenues grew 19 percent to $ 7.3 billion. It was actually clear that this time the big blockbusters were not to be expected due to production problems caused by the pandemic. But when it comes to the outlook, analysts expected more. This caused the share to plummet sharply after the trading session, but the price quickly recovered.

.

0 comment
0

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.