Netflix has seen its progress slow down since the start of the year. It has conquered “only” four million additional subscribers in the first quarter against 16 million in the same period, a year ago. A figure below its forecasts and which makes it miss its goal of reaching 210 million customers by the end of March. Finally, he will have to settle for 208 million.
An even flatter second trimester
He also warns that the second quarter will be even quieter. It plans to gain at most one million more subscribers in North America, which is its biggest market. It must be said that the forced-march vaccination campaign conducted in the United States gives hope for a near return to normal life.
Netflix sees two explanations for this situation. The results of the year 2021 will suffer from the comparison with those of 2020, at the height of the confinements due to the pandemic. In total, last year Netflix will have registered 37 million additional users. The streaming giant finally concedes that its list of new content was less provided this first quarter due to delays in deliveries again due to the health crisis.
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No panic, however, for the streaming giant. He has significantly increased his income, which finally allows him to balance his finances and cover his high expenses on production.
The Financial Times notes that the main question investors are now asking is whether it will be able to maintain its lead over its competitors for a long time, especially Disney + which continues to grow at a breakneck pace. He’s also likely to take the brunt of the blow even more when audiences return to the fullness of their movements and outdoor activities around the world.
Netflix’s response is to redouble its efforts in terms of content. It will devote a budget of 17 billion this year.
Source: Financial Times