Netflix fell short of Wall Street’s forecasts for new subscribers in late 2021 and delivered a weaker-than-expected forecast for early 2022 as rivals increased competition in the battle for customers.
The world’s biggest streaming service added 8.3 million customers from October to December when it launched movies like “Red Alert” and “Don’t Look Up” and a new season of “The Witcher.” The company’s total global subscribers reached 221.8 million.
Industry analysts projected that Netflix would add 8.4 million customers, according to data from Refinitiv. The lower-than-expected result was reflected in the market, and the shares fell 13% in the after-market (trade that takes place after the traditional trading session closes).
Netflix raised prices last week in its biggest markets, the United States and Canada, where analysts say growth has stalled, and is now looking to expand abroad.
The company faced a roller coaster ride during the pandemic, with sharp growth in early 2020 as people stayed home and theaters closed, followed by a slowdown in 2021. Netflix gained more than 36 million customers in 2020 and 18.2 million in 2021.
In 2022, Netflix subscriber growth is expected to stabilize and return to pre-pandemic pace, analysts say. The company’s upcoming lineup includes new seasons of “Ozark,” “Bridgerton” and “Stranger Things” and a three-part documentary about Kanye West.
But competitors, including Walt Disney and AT&T HBO Max, are investing billions in creating new programming for their streaming services.
Netflix reported fourth-quarter revenue of $7.71 billion, in line with estimates.
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