{"id":231620,"date":"2021-04-20T23:43:00","date_gmt":"2021-04-20T20:43:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/netflix-predicts-worst-quarter-for-streaming-growth-in-its-history-stock-falls-11\/"},"modified":"2021-04-20T23:43:00","modified_gmt":"2021-04-20T20:43:00","slug":"netflix-predicts-worst-quarter-for-streaming-growth-in-its-history-stock-falls-11","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/netflix-predicts-worst-quarter-for-streaming-growth-in-its-history-stock-falls-11\/","title":{"rendered":"#\n  Netflix predicts worst quarter for streaming growth in its history, stock falls 11%"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a418866dbbc6\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a418866dbbc6\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/netflix-predicts-worst-quarter-for-streaming-growth-in-its-history-stock-falls-11\/#Netflix_added_4_million_new_subscribers_in_the_first_quarter_2_million_fewer_than_it_expected_and_forecasts_just_1_million_additions_in_the_current_quarter_which_would_be_lowest_total_yet\" >Netflix added 4 million new subscribers in the first quarter, 2 million fewer than it expected, and forecasts just 1 million additions in the current quarter, which would be lowest total yet<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/netflix-predicts-worst-quarter-for-streaming-growth-in-its-history-stock-falls-11\/#Jon_Swartz\" >Jon Swartz<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Netflix predicts worst quarter for streaming growth in its history, stock falls 11%<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Netflix_added_4_million_new_subscribers_in_the_first_quarter_2_million_fewer_than_it_expected_and_forecasts_just_1_million_additions_in_the_current_quarter_which_would_be_lowest_total_yet\"><\/span>\n  Netflix added 4 million new subscribers in the first quarter, 2 million fewer than it expected, and forecasts just 1 million additions in the current quarter, which would be lowest total yet<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div class=\"cx--next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000220493\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Netflix Inc. has come back down to earth after stratospheric gains during the opening months of the COVID-19 pandemic.<\/p>\n<p> The streaming giant on Tuesday reported 3.98 million net new paid subscribers in the first quarter, down from 8.5 million reported in the previous quarter and well below the 6 million the company predicted three months ago. <\/p>\n<div class=\"paywall\">\n       For the current quarter, Netflix<br \/>\n        NFLX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202353025\/composite\" class=\"negative\">-0.88%<\/bg-quote><br \/>\n       expects just 1 million net new streaming customers, which would be the lowest total on record for the company. The lowest quarterly net gain for streaming subscribers currently is just over 1 million in the second quarter of 2013, according to FactSet records. <\/p>\n<p>Analysts had expected 6.34 million new subscribers in the first quarter, and 4.2 million in the second quarter, according to FactSet. The <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> sent shares of Netflix down 11% in after-hours trading, with prices dipping below $500.<\/p>\n<p>A drop-off seemed inevitable after a national lockdown for more than a year shuttered consumers at home, where they went to streaming services in droves for entertainment. Netflix reported an annual net gain of 36.6 million subscribers to 203.7 million last year, which executives noted when discussing the latest results.<\/p>\n<p>\u201cWe believe paid membership growth slowed due to the big COVID-19 pull-forward in 2020 and a lighter content slate in the first half of this year, due to COVID-19 production delays,\u201d Netflix executives wrote in a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/s22.q4cdn.com\/959853165\/files\/doc_financials\/2021\/q1\/FINAL-Q1-21-Shareholder-Letter.pdf\" class=\"icon none\">letter to shareholders<\/a>, summarizing the dis<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointing first-quarter performance.<\/p>\n<p>\u201cIn the short-term, there is some uncertainty from COVID-19; in the long-term, the rise of streaming to replace linear TV around the world is the clear trend in entertainment,\u201d the letter said.<\/p>\n<p>While fewer new subscribers signed on, Netflix made more money from increased subscription prices. Netflix said it earned $1.7 billion, or $3.75 a share, against expectations of $2.98 a share, according to analysts polled by FactSet. Netflix\u2019s revenue soared 24.2% to $7.16 billion, beating estimates of $7.14 billion.<\/p>\n<p>With more than 200 million subscribers, the trick now is how to hold on to them, and monetize them. One clear way is to raise subscription fees, as Netflix did in the U.S. and Canada in February; another is to crack down on shared accounts to squeeze out more memberships per household.<\/p>\n<p><strong>Read more: Your streaming subscriptions reshaped Disney and turbocharged Netflix \u2014 now comes making more money off you<\/strong><\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>For investors, Netflix promised $5 billion in share repurchases beginning this year. The company has not repurchased any stock since the end of 2011, according to FactSet records. <\/p>\n<p>Netflix has more than held its own in a streaming market that includes rivals Walt Disney Co.<br \/>\n        DIS,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203410047\/composite\" class=\"negative\">-2.48%<\/bg-quote><span>,<\/span><br \/>\n       Apple Inc.<br \/>\n        AAPL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202934861\/composite\" class=\"negative\">-1.28%<\/bg-quote><span>,<\/span><br \/>\n       Comcast Corp.<br \/>\n        CMCSA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209472081\/composite\" class=\"positive\">+0.04%<\/bg-quote><span>,<\/span><br \/>\n       Amazon.com Inc.<br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"negative\">-1.11%<\/bg-quote><span>,<\/span><br \/>\n       and AT&amp;T Inc.<br \/>\n        T,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203165245\/composite\" class=\"negative\">-0.33%<\/bg-quote><span>.<\/span><br \/>\n       But with millions of Americans getting vaccinated for COVID-19 and the economy opening up, the question remains whether people continue to get their entertainment at home or venture to vacation spots, movie theaters, restaurants and sporting venues.<\/p>\n<p>\u201cCombined with easing lockdown restrictions, Netflix may face increasingly strong headwinds in the next few quarters as consumers shy away from their devices in favor of the outdoors,\u201d analyst Peter Hanks of news and research site DailyFX.com warns.<\/p>\n<p>The Silicon Valley streaming giant says it intends to spend more than $17 billion in cash on content this year, and it expects paid membership growth will \u201cre-accelerate\u201d in the second half of 2021 as it ramps up a slate of popular programming such as  \u201cSex Education,\u201d \u201cThe Witcher,\u201d \u201cLa Casa de Papel\u201d (aka \u201cMoney Heist\u201d), and \u201cYou.\u201d It is also readying <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">movies<\/a> like \u201cRed Notice,\u201d starring Gal Gadot, Dwayne Johnson and Ryan Reynolds, and \u201cDon\u2019t Look Up,\u201d with Leonardo DiCaprio, Jennifer Lawrence, Cate Blanchett, Timoth\u00e9e Chalamet and Meryl Streep.<\/p>\n<p>Netflix shares are up 1.6% so far this year, while the broader S&amp;P 500 index\u00a0<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.68%<\/bg-quote><br \/>\n       has gained 10% in 2021.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jon Swartz\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Jon_Swartz\"><\/span>Jon Swartz<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D35D4D32607F%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Netflix predicts worst quarter for streaming growth in its history, stock falls 11% &#8221; Netflix added 4 million new subscribers in the first quarter, 2 million fewer than it expected, and forecasts just 1 million additions in the current quarter, which would be lowest total yet Netflix Inc. has come back down to earth&#8230;<\/p>\n","protected":false},"author":1,"featured_media":231621,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-231620","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/231620","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=231620"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/231620\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/231621"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=231620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=231620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=231620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}