Netflix closed 2021 with net profits of 5,116 million dollars, nearly double that of the previous year, in a year in which the rate of new users, however, slowed down, with 18 million compared to 37 million in 2020.
The company based in Los Gatos (California) has 221.8 million subscribers to its streaming service around the world, but as competition increases its ability to attract new customers continues to slow, with 2021 posting the lowest growth in three years.
In addition, the company lowered the forecasts for the first quarter of 2022 and predicted it will add 2.5 million subscriptions, far from the 3.9 it achieved during the same period in 2021.
“Although new competition may be slightly affecting our marginal growth, we continue to grow in all countries and regions where new alternative platforms have launched,” Netflix said in a letter to investors published Thursday.
However, the explanations were not convincing. Wall Street and the company’s shares fell 18% to $412 per share in electronic trading after the New York markets closed.
The two factors to which Netflix attributed this slowdown are the entry of new options in the market of “streaming”, such as Disney and Apple, and the lack of premieres in the first half of the year, mostly due to the postponement of filming during the hardest months of the pandemic.
The company’s best period was between October and December, coinciding with the premiere of global phenomena such as “The Squid Game”, “Red Notice”, “Don’t Look Up” and the last season of “Money Heist”.
During that last quarter of the year, the strongest for the television market, Netflix added 8.2 million subscribers and obtained a net profit of 607 million dollars compared to the 542 million it registered in the same period of 2020.