Netflix knocked after bringing in fewer subscribers than expected
Netflix knocked on the door after a difficult start to the year: streaming giant is getting fewer subscribers than expected
Shares of Netflix fell last night after the streaming giant brought in fewer subscribers than expected.
The company had 1.8 million paying customers in the first quarter of the year, bringing the total to 233 million.
But that was less than the 2.3 million additions expected on Wall Street and shares fell as much as 11 percent before recovering.
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The company is grappling with a slowdown in consumer spending as it struggles to bring in new viewership with major releases like The Night Agent and The Glory.
Profit for the first three months of the year fell from £1.2 billion to £1 billion, while turnover fell from £6.5 billion to £6.2 billion.
Both were below analyst expectations, which came in at £1.3bn and £6.6bn respectively for the quarter.
Netflix had a rocky start to 2022, announcing its first drop in paying subscribers in more than a decade in the first half of the year.
This was caused by the end of lockdowns and the crisis in the cost of living, which put increasing pressure on family budgets.
The combination of inflationary pressures and the broader tech sell-off spelled disaster for Netflix, forcing it to cut hundreds of jobs and raise prices in key markets.
Dan Ives, an analyst at Wedbush, said: “It’s a streaming arms race and Netflix needs to spend money to defend its consumer territory.”