Netflix slows down
Netflix accumulates fewer new subscribers than expected and falls on the REUTERS stock market - Dado Ruvic
Text by: Myriam Berber
2 min
The auspicious period of the pandemic is drawing to a close for Netflix.
The leader in video streaming ends the first quarter with nearly 208 million paying subscribers worldwide.
That's 2 million less than what Netflix promised investors.
A result immediately sanctioned by the markets.
Its stock lost more than 10% after the Nasdaq closed.
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Clear slowdown for Netflix, which is doing less well than expected despite growth of 14%.
There are several reasons for this drop in the number of paying subscribers.
First, the deconfinement.
Then, the lack of renewal of its content.
Finally, the arrival of fierce competitors.
Netflix is losing ground against HBO Max and especially Disney +.
Three years ago, the streaming leader had almost half of the US market.
Today, he owns 30%.
The streaming pioneer is now close to saturation in the United States, its biggest market.
The platform now expects only 1 million additional subscribers for the current quarter, against 10 million
last year
at the same period.
More original productions
Its competitor
Disney +,
which started at the end of 2019, now has 95 million subscribers thanks to the launch of its new “Star” tab, which has a huge catalog for an older audience.
Disney + also offers low prices compared to other platforms.
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To read also: Love in the time of the corona, an exciting confined mini-series
To boost its growth, Netflix is now counting on the European market and on new content from this summer with the return of very popular series such as
Sex Education
or
La Casa de Papel
.
Netflix will also resume filming thanks to the Covid-19 vaccination campaign.
The group will spend more than $ 17 billion on original productions this year.
Netflix can afford it.
Its first-quarter profit jumped to $ 1.7 billion.
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