Netflix Inc. reported lower-than-expected subscriber numbers for the fourth quarter on Thursday, underscoring the video streaming pioneer’s struggles to attract users as pandemic restrictions ease and competition intensifies.
Shares of the company fell nearly 10% in aftermarket trading.
The positive effect of the pandemic on subscriber numbers is fading, as people, tired of being cooped up at home, seek in-person entertainment. The superhero film “SpiderMan: No Way Home”, released in theaters in mid-December, became the first pandemic film to exceed $1 billion at the global box office.
Netflix also faces deep-pocketed rivals in the battle for streaming subscribers.
The company said it added 8.28 million subscribers in the three months ended December 31. Analysts had expected an average of 8.39 million additional subscribers, according to IBES data from Refinitiv.
Netflix reported fourth quarter revenue of $7.71 billion, matching estimates of $7.71 billion.