Netflix’s market worth plunged by virtually a fifth after forecasting a dramatic slowdown in subscriber development within the first quarter, because the pandemic-fuelled streaming boom fizzles out and competitors from newer rivals reminiscent of Disney+ grows.

Netflix expects so as to add solely 2.5 million new subscribers globally within the first three months of the 12 months, nicely down on the 4 million new sign-ups within the first quarter of 2021, and virtually half the quantity anticipated by analysts.

Shares within the streaming firm plunged by virtually 20%, virtually $45bn, as traders took fright on the surprising slowdown in development.

“Whereas retention and engagement stay wholesome, acquisition development has not but re-accelerated to pre-Covid ranges,” Netflix mentioned, pointing to “Covid overhang and macroeconomic hardship” in elements of the world reminiscent of Latin America.

Netflix added 8.3 million new subscribers within the ultimate quarter of final 12 months, because of hits such because the Leonardo DiCaprio and Jennifer Lawrence movie Don’t Look Up, and Squid Sport, broadly consistent with analyst expectations.

Total, Netflix added 18.2 million new subscribers final 12 months, half the number it gained in 2020 when the pandemic fuelled a streaming growth as the general public sought to alleviate boredom throughout lockdowns.

Netflix admitted that the streaming wars towards rivals reminiscent of Disney, Apple, HBO Max, Peacock and Amazon, which on Wednesday introduced particulars of its mega-budget Lord of The Rings TV adaptation, is intensifying however that it stays in development in all territories.

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“Customers have at all times had many selections in terms of their leisure time – competitors that has solely intensified over the past 24 months as leisure corporations all world wide develop their very own streaming providing,” the corporate mentioned.

“Whereas this added competitors could also be affecting our marginal development, we proceed to develop in each nation and area by which these new streaming alternate options have launched.”

Final 12 months, Netflix added the fewest number of UK subscribers because it launched in 2012.

Netflix pointed to numerous huge releases, together with Ozark, Bridgerton and Stranger Issues, later within the first quarter that it expects to drive a return to stronger development.


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