Netflix Shares Plunged 20% After News of Slowing Subscriber Growth

Citing increased competition from other streamers as a major factor.

Entertainment 
13,549 Hypes 9 Comments

Netflix has officially reported its Q4 earnings for 2021.

While the streaming giant has been able to increase its earnings per share in Q4 to $1.33 USD versus $.19 USD a year ago, it was not enough to maintain a steady share growth. Netflix’s shares plummetted more than 20% in after-hours trading after news of slowing subscribers. This marks the lowest levels the shares have been since June 2020. The global paid net subscriber additions were 8.28 million versus the predicted 8.19 million. While Netflix did surpass expectations, the number is still fewer than the 8.5 million subscribers Netflix added in Q4 of 2020.

Netflix expects to add 2.5 million subscribers in Q1 of 2022, which falls way below the 3.98 million it added in Q1 2021. With a lower benchmark, it lowers the confidence of many stakeholders. Analysts on the other hand expect Netflix to add 6.93 million subscribers in Q1 of 2022. Q4 2021 saw Emily in Paris, Don’t Look Up, Red Notice and You as its highest performing content.

The streaming giant cites growing competition from other companies including, Apple TV+, Disney+, HBO Max and other as a direct effect in the company’s poor results. Netflix said,

“Consumers have always had many choices when it comes to their entertainment time – competition that has only intensified over the last 24 months as entertainment companies all around the world develop their own streaming offering.

While this added competition may be affecting our marginal growth some, we continue to grow in every country and region in which these new streaming alternatives have launched.””

Netflix recently announced price increases for American and Canadian subscribers.

In other Netflix news, the streaming giant is releasing 25 Korean originals in 2022.

Read Full Article

What to Read Next

Netflix Stock Price Drops 20% After Announcing Loss of 200K Subscribers
Entertainment 

Netflix Stock Price Drops 20% After Announcing Loss of 200K Subscribers

The company attributed a previous boost in subscribers to COVID.

Netflix Stock Continues Downward Trend After Slowing Subscriber Growth Reports
Entertainment 

Netflix Stock Continues Downward Trend After Slowing Subscriber Growth Reports

Signaling a slow start to Q1.

Disney+ Surpasses Subscriber Growth Expectations, Gaining Traction on Netflix
Entertainment 

Disney+ Surpasses Subscriber Growth Expectations, Gaining Traction on Netflix

Beating Wall Street’s predictions by adding 7.9 million subscribers.


More Than Half of Netflix's Global Subscribers Watched Anime in 2021
Entertainment

More Than Half of Netflix's Global Subscribers Watched Anime in 2021

40 new titles are coming to the streaming platform this year.

Porsche Taycan Revealed as Formula E Safety Car
Automotive

Porsche Taycan Revealed as Formula E Safety Car

Exterior paintwork displays colors of all 11 teams.

Netflix Teases 'Squid Game' Universe, Officially Confirms Season 2
Entertainment

Netflix Teases 'Squid Game' Universe, Officially Confirms Season 2

“The ‘Squid Game’ universe has just begun”

Indonesia Names Its New Capital City to Replace Sinking Jakarta
Travel

Indonesia Names Its New Capital City to Replace Sinking Jakarta

The move to Nusantara will cost roughly $32 billion USD and complete in 2045.

Robert Pattinson's 'The Batman' Will Reportedly Be Around Three Hours Long With Credits
Entertainment

Robert Pattinson's 'The Batman' Will Reportedly Be Around Three Hours Long With Credits

One of the longest superhero films ever.

The Nike ACG Air Mada Low Makes its Return in "Triple Black"
Footwear

The Nike ACG Air Mada Low Makes its Return in "Triple Black"

Originally introduced in 1994.


Pete Davidson Responds to Kanye West's "Eazy" Diss
Entertainment

Pete Davidson Responds to Kanye West's "Eazy" Diss

The comedian is reportedly taking it well.

Lonzo Ball Out for Six to Eight Weeks Due to Knee Surgery
Sports

Lonzo Ball Out for Six to Eight Weeks Due to Knee Surgery

The Chicago Bulls star could return just before the playoffs.

Porsche Brings The Art of Cyril Lancelin to Singapore Art Week
Art 

Porsche Brings The Art of Cyril Lancelin to Singapore Art Week

Presented by Porsche
As part of the luxury car marque’s globe-trotting ‘The Art of Dreams’ initiative.

Shake Shack Celebrates Lunar New Year With Dark Meat Peking Chicken Sandwich
Food & Beverage

Shake Shack Celebrates Lunar New Year With Dark Meat Peking Chicken Sandwich

Inspired by Pekingese Duck pancakes.

MoMA Design Store Releases Faith Ringgold-Inspired Collection
Art

MoMA Design Store Releases Faith Ringgold-Inspired Collection

Featuring a skateboard diptych, puzzles and more.

More ▾
 
Subscribe to our Newsletter

Gain access to exclusive interviews with industry creatives, think pieces, trend forecasts, guides and more.

By subscribing, you agree to our Terms of Use and Privacy Policy.

Looks like you’re using an ad-blocker

We charge advertisers instead of our readers. Support us by whitelisting our site.

Whitelist Us

How to Whitelist Us

screenshot
  1. Click the AdBlock icon in the browser extension area in the upper right-hand corner.
  2. Under “Pause on this site” click “Always”.
  3. Refresh the page or click the button below to continue.
screenshot
  1. Click the AdBlock Plus icon in the browser extension area in the upper right-hand corner.
  2. Block ads on – This website” switch off the toggle to turn it from blue to gray.
  3. Refresh the page or click the button below to continue.
screenshot
  1. Click the AdBlocker Ultimate icon in the browser extension area in the upper right-hand corner.
  2. Switch off the toggle to turn it from “Enabled on this site” to “Disabled on this site”.
  3. Refresh the page or click the button below to continue.
screenshot
  1. Click the Ghostery icon in the browser extension area in the upper right-hand corner.
  2. Click on the “Ad-Blocking” button at the bottom. It will turn gray and the text above will go from “ON” to “OFF”.
  3. Refresh the page or click the button below to continue.
screenshot
  1. Click the UBlock Origin icon in the browser extension area in the upper right-hand corner.
  2. Click on the large blue power icon at the top.
  3. When it turns gray, click the refresh icon that has appeared next to it or click the button below to continue.
screenshot
  1. Click the icon of the ad-blocker extension installed on your browser.You’ll usually find this icon in the upper right-hand corner of your screen. You may have more than one ad-blocker installed.
  2. Follow the instructions for disabling the ad blocker on the site you’re viewing.You may have to select a menu option or click a button.
  3. Refresh the page or click the button below to continue.