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Netflix misses first quarter subscribers goals and stocks plunge

Despite the increase in the number of users who subscribed to the streaming service, Netflix lost about 10% in the stock market because it was two million subscribers short from the promise made for the first quarter of this year.

Netflix misses first quarter subscribers goals and stocks plunge

Netflix misses first quarter subscribers goals and stocks plunge

However, Netflix’s revenue increased by 24%, to more than $7 billions and net profit was $1.7 billions, numbers that were above expectations.

But the increase in revenue and profit did not encourage investors, as Netflix is ​​losing ground to other services, such as Disney +. We wrote earlier this month that they lost 9% of the market share as competition increases.

The technological giant justified, in a earnings call, that the number of subscribers fell short of expectations because of the reduction in the offer of exclusive content, based on the delays in production caused by the pandemic.

“It really boils down to COVID, frankly,” Netflix CFO Spencer Neumann added on the call. “For us, at a minimum it creates some short term choppiness in the business trends.”

“We believe paid membership growth slowed due to the big Covid-19 pull forward in 2020 and a lighter content slate in the first half of this year, due to Covid-19 production delays,” the company wrote in its quarterly letter to shareholders. “We continue to anticipate a strong second half with the return of new seasons of some of our biggest hits and an exciting film lineup. In the short-term, there is some uncertainty from Covid-19; in the long-term, the rise of streaming to replace linear TV around the world is the clear trend in entertainment.”

During the current quarter, the platform expects over one million subscribers, well below the ten million in the same period of 2019.

A boost is expected during the summer with the return of popular series such as ‘Sex Education’ and the last season of ‘La Casa de Papel’.

What appeared to be almost a monopoly of Netflix in the streaming market is increasingly disputed by other services, such as Disney +, HBO Max or Amazon Prime Video.

With informations: Hollywood Reporter

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