TIME reports that Netflix's new streaming service growth has slowed in the last quarter of 2021. At the end of last week, the company announced a price increase for its services for users in the US and Canada. Analysts attribute these events to the current decrease in the value of securities by 20%.
Between October and December last year, Netflix attracted 8.3 million subscribers worldwide, but this figure is 200,000 less than in 2020. The company expects a 2.5 million increase in subscribers in the first three months of 2022, with a 4 million increase in new users in the first quarter of 2021.
The released data sent Netflix shares down 20.2%.
In 2021, the service attracted 18.2 million new users, but the annual growth was the smallest in the last five years. In 2020, Netflix added 36 million subscribers, analysts attribute this to the start of the COVID-19 pandemic in the spring.
Currently, Netflix has a total audience of 222 million users worldwide, which is more than any other video streaming service. Pressure from competitors such as Apple and Disney forced the company to open a video game division. In November, several games for iOS and Android became available for download in the Netflix store.
Third Bridge analyst Joe McCormack says the backdrop for 2022 will be intense competition. In its quarterly report to shareholders, Netflix called the influence of competitors insignificant, noting that the service is developing well in the countries where it operates. The company's revenue for 2021, according to the letter, amounted to $ 30 billion, which is 19% higher than last year. Revenue for the fourth quarter of 2021 increased by 16% to $7.7 billion.
Representatives of the company refer to the fact that the instability of the development of the pandemic hinders the assessment of future growth. Netflix co-founder and CEO Reed Hastings says the company is trying to stay calm and sort things out.
Experts say that future growth in Canada and the US is hampered by the availability of subscriptions for those who could become potential Netflix users. At the end of last year, the Netflix audience in these countries reached a total of 75.2 million subscribers, with an increase of a minimum of 1.3 million.
TIME believes that new Netflix subscribers will be attracted by the launch of the fourth season of Ozark.
In January, Netflix announced a price increase on all of its plans for users in the US and Canada. Subscriptions in the United States now range from $9.99 to $19.99. The most affordable tariff has risen in price for the first time in three years.
Last December, Netflix cut its subscription prices in India from 18% to 60%. The cheapest tariff in the country began to cost $2.62. Thus, the company is responding to increased competition from other video services.
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