The streaming giant argues that this drop is due in particular to the suspension of its service in Russia.
For the first time in more than 10 years, the Netflix streaming platform lost more than 200,000 subscribers in the first three months of the year. Its stock market rating therefore fell by 25%. And the worst has not yet happened: Netflix still expects a subscriber leak of up to 2 million before the end of June. And this despite the dissemination ofAdam through time and season 2 of Bridgerton.
The streaming service previously forecast 2.5 million paid net additions in the first quarter, while Wall Street analysts expected it to add 2.8 million new subscribers in the first quarter, down from 3.98 million the previous year, according to FactSet. It was therefore obvious that Netflix’s performance would be poor.
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If the confinement made the fortune of the site, the slowdown in the number of new subscribers was inevitable. Faced with the violence of this decline, the platform justified itself:
“First, it is increasingly clear that the pace of growth in our underlying addressable market (broadband homes) is partly dependent on factors beyond our direct control, such as the adoption of connected TVs (as the majority of our viewing is on TVs), adoption of on-demand entertainment and data costs.”
“Second, in addition to our 222 million paying households, we estimate that Netflix is shared with over 100 million additional households, including over 30 million in the UCAN region.”
“Third, competition for viewing with linear TV as well as YouTube, Amazon and Hulu has been robust over the past 15 years. However, over the past three years, traditional entertainment companies have come to realize that streaming is the future, many new streaming services have also been launched.”
“Fourth, macroeconomic factors including anemic economic growth, rising inflation, geopolitical events such as Russia’s invasion of Ukraine, and some ongoing COVID disruptions are likely having an impact as well.”
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