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?
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. headtopics.com
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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