Netflix’s subscribers gradually slow down
Surprisingly, OTT platform giant, Netflix’s subscribers gradually slow down after the pandemic especially in the first quarter of this year. Netflix announced it is estimated that it will only add 1 million new subscribers in the second quarter of this year. The movies and dramas hub claimed that the decrease in its subscription is due to the lack of productions of dramas and movies. The company has been unable to provide new content due to the slower productions of TV or dramas shows and movies. As a result of the decrease in its subscribers, the company’s shares drop by 11 per cent last Tuesday.
According to the survey by Refinitiv, 3.98 million people subscribed to Netflix from January to March which is below the average of 6.25 million subscribers. Furthermore, Netflix also estimated that it will add only 1 million subscribers from the next second quarter. However, experts have predicted a subscription of nearly 4.8 million people.
Also, Netflix claimed it did not believe that competition changed in the first quarter as many platforms suffer due to pandemic. Additionally, Netflix announced that by releasing new seasons and movies its membership could rapidly grow. The new seasons and movies include You, Money Heist, The Witcher and the action movie name Red Notice.
In the last year, Netflix had a record 15.8 million subscribers as the Covid hit the world and people were forced to stay home. Netflix announced that the Covid-19 has hindered filming new seasons and movies. To overcome its financial issues, Netflix has raised its subscription rates in Britain, Germany, Argentina as well as in Japan also.
Netflix’s rival companies like Walt Disney’s Disney+ and Amazon Prime Videos are spending millions of dollars to compete with it. Especially, after its decline in the first quarter of the year rival companies are taking the rivalry to the next level by spending more money.