Netflix shares are down about 20% after some predictions made by the company. The expectation was that growth would accelerate after the end of the COVID pandemic that the world has been facing since the end of 2019, but the future may be a little different.
According to Netflix analysis, the streaming service is expected to gain just 2.5 million subscribers in the first quarter of the year. Although the number of new members until March is not bad, the company expected higher numbers for the post-pandemic.
In addition, the company managed to add around 18.2 million new subscribers last year. The number is half the amount of members that the platform had gained in the year 2020, when the pandemic was at its strongest.
According to Netflix: “While retention and engagement remain healthy, acquisition growth has not yet accelerated to pre-Covid levels”. In addition, they also pointed out factors such as the economic difficulties that happen around the world, as in Latin America.
The main apparent cause of the problem would be competition, which may be starting to impact the network that until then was dominant in the market. With different services such as Dinsey+, HBO Max, Amazon Prime Video, among others, it is possible that Netflix will start to have a certain threat in the market.
One of the factors that complicates the situation of the streaming service is the content, considering that its competitors are managed by major movie studios. Star+ has all the content from Fox, HBO Max from Warner and so on.
To try to reverse the situation that could end up becoming a problem in the future, Netflix has invested billions of dollars in original productions. The idea is to give the subscribing audience as much content as possible to maintain interest in the service.
Netflix currently has about 222 million subscribers. To subscribe to the service, just go to the company website, create an account and choose your plan.
This article is an adaptation of the text published by BBC News.
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