Netflix is the platform that has the highest percentage of subscribers, but it is not going through its best moment. The company is experiencing a slowdown in the growth of its subscriptions , mainly due to the rise of its competitors. Now comes the question of whether the company is close to reaching its ceiling or whether it still has room to continue increasing its penetration.
These are some of the conclusions that can be drawn from Netflix's fourth-quarter results. The company's shares plummeted by more than 20% in after-hours trading, to their lowest levels since June 2020.
However, the firm has stressed that it has added 8.3 million new users in the last quarter of the year. This means that it has reached 221.8 million, which is below the 8.5 million that the company based in Los Gatos, California, had predicted. However, Wall Street analysts opted more for the first option and not so much for the second proposal.
closed 2021 with net profits slovenia number data of 5,116 million dollars (4,512 million euros), a figure that practically doubles that obtained in the previous year.
Netflix's forecasts for 2022
The company , meanwhile, said it expects to add 2.5 million subscribers in the first quarter of 2022, down from the 3.98 million it added in the first quarter of 2021. Analysts, meanwhile, expect 6.93 million in the first quarter, according to StreetAccount estimates.
To counter this scenario, Netflix has pointed to the arrival of new content with major releases scheduled for March . It hopes that this will boost subscription numbers, but it should be noted that it is a similar image to the one it presented for the fourth quarter. At the time, it anticipated a big jump in the consumer section at the end of 2021, when the company launched new series and films such as the second season of "Emily in Paris", "Don't Look Up" or "The Witcher".
It turns out that this has not been the case, so we will have to wait and see if that formula works for it in 2022. Netflix points to increased competition from other companies as one of the reasons for the slowdown, although it has said in the past that companies like Apple or Disney would not materially affect growth.
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