Shares of Netflix drastically fell 11% after trading hours found a huge miss in the numbers of the subscriber, according to the report of first-quarter earnings. The organization also agreed to this fact and they only have an expectation to add almost 1 million subscribers in this latest quarter.
The Key Numbers are Mentioned:
Earnings per share (EPS): $3.75, vs $2.97 expected, Refinitiv survey of analysts report
Revenue: $7.16 billion, vs $7.13 billion expected, Refinitiv report
Global paid net subscriber additions: 3.98 million vs 6.2 million expected, Factset report.
This gradual slowdown of Netflix subscriber numbers is taking by Netflix as the reason for the ongoing COVID-19 pandemic situation. It is the reason some of the high-budget and big-name Netflix movies and shows are approaching to audience lately.
Netflix believes the gradual decrement in paid membership growth is moreover because of the Coronavirus pandemic, as it pulling forward in 2020 and a lighter content slate in the year’s first half. Production limits are delaying due to the Covid-19 situation.
Netflix has in continuation form to hold their position against a group of key competitors including HBO Max, Disney’s Hulu and Disney+, Apple TV, Amazon Prime, and Comcast NBCUniversal’s Peacock. However, Netflix clearly said that this big number of competitors is not a factor to decrease their paid membership subscribers. Hence, Netflix as a precautionary and strategic move picks their best content delayed in launching for the year-end time to create awaiting interest and suspense among their subscribers.