U.S. video streaming giant Netflix (Netflix) last quarter, the number of new paid subscribers than expected, indicating that the new crown virus outbreak brought an abrupt end to the boom in the home to follow the drama, once after the market fell 13%.
Netflix is expected to face even greater challenges this quarter, with only 1 million new paid subscribers added this quarter, a far cry from analysts’ estimates of 4.44 million.
Netflix warned that new subscriber growth would slow down once customers ended their home-proof lifestyle, but didn’t expect the growth to stall so sharply. netflix surged by 15.8 million paid subscribers in Q1 last year, the highest number of new subscribers ever in a single quarter, and the growth in new subscribers remained impressive until Q4 last year.
Netflix blamed last quarter’s dismal new subscriber numbers on the “new crown epidemic” effect last year, when the epidemic drove people to catch up on TV shows at home, causing Netflix to accelerate its growth significantly. Netflix’s growth in the same period this year was therefore damaged.
Netflix also said that the lack of new series last quarter was one of the reasons for the decline in the number of new subscribers, unlike last year’s fourth quarter when a series of popular movies such as “The Bradstones: A Celebrity Story” and “Back Wing Abandoned” hit the shelves.
Netflix reported its strongest financial results ever last quarter, including net income that more than doubled from a year ago to $1.71 billion and free cash flow of $692 million.
Netflix also plans to reduce debt and buy back $5 billion worth of treasury stock.
Netflix, the video streaming platform, did not add as many paid subscribers as expected last quarter.
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