Added 3.98 million paid subscribers in the quarter ended March 31; analysts had expected 6.25 million
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Published Apr 20, 2021 • 1 minute read
Signage outside the Netflix Inc. office building on Sunset Boulevard in Los Angeles, California. Photo by Bing Guan/Bloomberg Netflix Inc. added fewer-than-expected paid subscribers in the first quarter, weighed down by a lighter content slate in the first half of the year due to COVID-19 production delays, sending shares tumbling 10 per cent in after-market trading.
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Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. The rapid growth in subscriber base during the pandemic-led lockdown last year also seems to be slowing due to vaccine rollouts that have accelerated theatre reopenings and live sport events, giving people more avenues of entertainment.
Moreover, with more households opting for streaming over cable, the competition with big-pocketed rivals like Walt Disney Co’s Disney+ and AT&T’s HBO Max, who are looking to grab market share from Netflix, has intensified.
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The company said on Tuesday it added 3.98 million paid subscribers in the quarter ended March 31. Analysts had expected it to add 6.25 million, according to IBES data from Refinitiv.
Revenue rose to US$7.16 billion from US$5.77 billion during the quarter, edging past estimates of US$7.13 billion.
Net income rose to US$1.71 billion, or US$3.75 per share, from US$709 million, or US$1.57 per share, a year earlier.
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