Netflix subscriptions slowed to 3.98 million between January and March, a significant drop from the company’s 6 million projection. The streaming app attributed the drop to lack of new shows and expressed optimism that it would recover as sequels to new shows are released.
Netflix added 15.8 million new subscribers in 2020 amid the Covid-19 pandemic that saw more people stay at home.
Although more people subscribed to the streaming app last year, the pandemic also slowed down the company’s production line.
“These dynamics are also contributing to a lighter content slate in the first half of 2021, and hence, we believe slower membership growth,” the company said in its quarterly letter to shareholders.
The company is now projecting even slower growth in the second quarter, expecting one million new subscriptions as opposed to the five million previously projected.
The streaming app is however expecting to have a stronger second quarter with the release of new seasons of popular series such as, Money Heist, You and the Witcher.
We had those ten years where we were growing smooth as silk,” Netflix chief executive Reed Hastings said. “It is just a little wobbly right now.”
Netflix is also dealing with the entry of new competition in the market. For instance, Disney+, which is much newer compared to Netflix, has already amassed 100 million subscribers compared to Netflix’s 207 .6 million.
Despite the slow growth, the company has reported revenues of $7.16 billion with a net income of $1.71 billion.