According to the fourth quarter report, Netflix did not add as many new subscribers as expected.
The lock-in and stay-at-home nature of the crown virus epidemic has clearly been a boon for streaming providers. Almost all providers, including Netflix, have seen growth, but whether they can retain new subscribers in the long term has been a major question mark.
Netflix's October numbers last year were as good as expected, but the fourth quarter was not as good: the service provider had 222 million subscriptions reported atbut managed to bring in one million less, or 221 million. While this may not seem like a huge difference at first glance, it is a clear sign that the world's most popular streaming service has lost its incredible popularity. On hearing the news, shares (unsurprisingly) took a nosedive, falling nearly 20 per cent, 19.8 per cent to be precise, on 21 January.
Still, there is no reason for the operator to complain, as they recorded a 16% year-on-year increase in revenue in October, November and December, and managed to increase their full-year profit from $2.7 billion to $5.1 billion.
However, they have been more cautious with their predictions for January, with only 2.5 million new subscribers, so few because of the much anticipated content, such as The Bridgerton family season two and Ryan Reynolds The Adam Project entitled time traveller will not be available on the platform until March.
