Netflix Inc added fewer-than-expected paid subscribers in the first quarter, weighed down by a lighter content slate in the first half of the year due to Covid-19 production delays, sending shares tumbling 10% in after-market trading.
The rapid growth in subscriber base during the pandemic-led lockdown last year also seems to be slowing due to vaccine rollouts that have accelerated theater reopenings and live sport events, giving people more avenues of entertainment.
Moreover, with more households opting for streaming over cable, the competition with big-pocketed rivals like Walt Disney Co’s Disney+ and AT&T’s HBO Max, who are looking to grab market share from Netflix, has intensified.
The company said on Tuesday it added 3.98 million paid subscribers in the quarter ended Mar. 31. Analysts had expected it to add 6.25 million, according to IBES data from Refinitiv.
Revenue rose to $7.16 billion from $5.77 billion during the quarter, edging past estimates of $7.13 billion.
Net income rose to $1.71 billion, or $3.75 per share, from $709 million, or $1.57 per share, a year earlier.
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