Wednesday April 21, 2021
Course collapses
Netflix is massively disappointing with the influx of customers
With series hits like “The Queen’s Gambit” or “Tiger King”, Netflix managed to attract millions of new users last year. But the times of unrestrained influx now seem to be over for the time being. Investors turn away disappointed.
The streaming market leader Netflix gained significantly fewer users than expected at the beginning of the year in view of the lack of new film and series hits. In the first quarter, the number of subscribers increased by four million to almost 208 million, Netflix announced after the US market closed.
The online video service thus clearly missed both its own target of around six million new customers and market expectations. Investors reacted disappointed and let the share fall in an after-hours reaction by more than ten percent. Netflix increased its revenues and profits sharply in the three months to the end of March. The bottom line was that the company earned $ 1.7 billion (EUR 1.4 billion), around 140 percent more than a year ago. This is due, among other things, to higher subscription prices. Revenue grew 24 percent to $ 7.2 billion thanks to higher subscription prices. Revenue rose 24.2 percent to $ 7.16 billion, beating estimates of $ 7.14 billion.
But after the boom at the beginning of the Corona crisis, which brought Netflix record results last year, the number of customers subsided sharply. Due to production problems caused by the pandemic, there has recently been a lack of new streaming hits. In addition, Netflix is struggling with growing competition, for example the Hollywood giant Disney is putting more and more pressure on.
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