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Netflix Subscribers Are Still Growing Slightly, But For How Long?

Netflix subscribers are still growing slightly, but for how long?

7/25/2021 5:30:00 PM

Netflix subscribers are still growing slightly, but for how long?

Subscriber growth for streaming service slightly outpaces projections following a booming 2020. Still, it's the smallest gain in years. Big questions loom in third quarter.

But 2021 has become a reckoning. The vaccine rollout and reopening of most businesses across the country mean people are no longer staying home. They are returning to pre-pandemic habits. Will watching less Netflix (and other channels) be part of that?

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Netflix acknowledges the subscriber drop but also points to other factors that may have played into it. The streamer has the bulk of its most-anticipated programs premiering in the second half of the year, including the recently droppedNever Have I Ever

. That’s in part because of production delays caused by COVID-19, which forced suspension of filming on many shows.Netflix was quick to point out that it could still add more than 54 million paid subscribers in a two-year period if it hits its projection of 3.5 million new subscribers in third quarter, “which is consistent with our pre-COVID annual rate of net additions,” the company said in a letter to investors.

Still, some concerning signs remain. Earnings came in a bit lower than expected, and while revenue beat expectations, the company admitted that user engagement per household member was also down substantially from its pandemic peak. Read more: Forbes »

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