Netflix Inc denied hopes for a speedy recovery, after yesterday's forecast for a weak increase in its subscribers in the first quarter of 2021.
ΑThis had the direct consequence of sinking the price of its shares by approximately -20%, wiping out most of the profits left over from the pandemic in 2020.
Η Netflix estimated to increase its subscribers by 2,5 million from January to March. This increase in the number of subscribers is less than 50% analysts estimate for the registration of 5,9 million new subscribers.
The company downgraded its growth estimates, citing delays in the release of new content, which has been expected for a long time, like the second season of the TV series "Bridgerton", But also of the film"The Adam Project».
Η Netflix is the largest streaming technology company in the world, and added 8,3 million new subscribers to its clientele from October to December, when it launched a substantial range of new programs such as,Red Notice" and "Don't Look Up", but and a new season of episodes of the drama TV series "The Witcher".
Analysts in the entertainment industry estimated that Netflix would increase its number of subscribers by 8,4 million, according to the data (Refinitiv IBES).
The total number of the company's subscribers worldwide reached 221,8 million at the end of 2021.
In a letter to its subscribers, Netflix said that the continuing difficulties from the COVID-19 pandemic and the financial difficulties in several parts of the world, such as Latin America, may to curb subscriber growth from the recovery at levels recorded before the pandemic.
The company recorded adjusted profits$ 1,33 per share exceeding analysts' estimates for earnings of 82 cents per share.
Netflix last week boosted prices in its largest markets, the US and Canada, for which analysts state that its growth records stagnation, while now seeking to increase its subscribers in foreign markets.
Revenue of $ 7,71 billion in the fourth quarter of 2021
The course of the company was dynamic during the pandemic, with a sharp increase in the number of their subscribers in 2020, when people stayed in their homes and cinemas were closed, to follow a slowdown in 2021. Netflix attracted more than 36 million subscribers in 2020 and 18,2 million subscribers in 2021.
The increase in the number of Netflix subscribers for 2022 is expected to stabilize and return to the pace it had before the pandemic, when had increased by 27,9 million subscribers in 2019, according to analysts.
The company's program for the next period includes new episodes of the TV series "Ozark", "Bridgerton" and "Stranger Things" and a three-episode documentary (Kanye West).
However, Netflix competitors such as Walt Disney Co. and AT&T Inc.'s HBO Max are spending billions of dollars to create a new program to gain market share through streaming technology.
Netflix recorded revenue 7,71 billion dollars in the fourth quarter of 2021, in line with analysts' estimates of revenue at the same level.
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