Netflix Inc., the Los Gatos, California-headquarter streaming media trailblazer, had missed analysts’ estimates for quarterly profit and revenues during Q1, 2021, as traders appeared to be brewing off fresh doubts on the streaming media giant’s ability to claw back from a steep slowdown in subscriber growth over its fiscal first quarter that ended on March 31.
On top of that, followed by a stronger-than-anticipated slowdown in subscriber growth over the latest quarter, several industry analysts were quoted saying that the streaming media giant might need to freshen up pricing policy amid a highly clogged market landscape, while Wall St.
analysts had also emphasized on the company’s approach towards creating interesting content. If truth is to be told, Netflix Inc.’s latest earnings’ report that underscored an utter decline in growth in paid subscriptions, came against the backdrop of a struggling media streaming industry which had been hammered hard due to the pandemic’s fiscal fallouts, while Netflix Inc.’s smaller rivals such as Hulu, Disney+, HBO Max alongside Amazon Prime Video, were expecting a boost on their balance sheets following release of chart-buster contents such as “Nomadland,” “The Father,” and “Promising Young Woman,” all of which would be wrestling for Oscar this weekend.
Netflix subscription growth runs out of steam as pandemic weighs
Besides, in what could be viewed as a ludicrous irony, the global-scale pandemic outbreak which had led to a meteoric upsurge in Netflix Inc.’s earnings last year, started off taking a greater toll on the streaming media giants’ earnings’ this year amid a highly competitive market landscape, though, the company had blamed the pandemic for a lull in new productions which in effect might have added to hindrances in subscribers’ growth, eventually sending Netflix Inc.
shares more than 7.5 per cent down. According to Netflix Inc.’s quarterly earnings’ report revealed late on Tuesday, the company said it had added less than 4 million new paid subscribers across the globe over the first quarter, widely missing an analysts’ estimate of 6.25 million.
Netflix Inc., in tandem, had lowered its second-quarter growth forecast to just 1 million new subscriptions, well below an earlier estimate of 4.8 million.