Netflix added 1.75 million subscribers in the first quarter, fewer than expected. The US streaming service said this on Tuesday after the close of trading on US stock exchanges. The company’s shares weakened by more than nine per cent after the release of its earnings, but then rebounded.
Netflix subscriptions
Analysts estimated that an additional 2.06 million people will subscribe to Netflix’s services. A year ago at this time, the company lost 200,000 subscribers, the first drop in subscribers in more than a decade, knocking down the company’s share price. According to MoffettNathanson, Netflix will add nearly nine million subscribers in 2022 – half the 18 million gained the previous year. The vast majority of new subscribers come from Asia.
Netflix increased revenue by nearly four per cent year-on-year to $8.2 billion (£175 billion) in the three months to the end of March, but net profit fell by around 18 per cent to $1.3 billion.
The end of DVD
The company also announced on Tuesday that it would exit its DVD rental business after about 25 years. Sending them by mail was the original business model of the company, founded in 1997. Netflix justified the end with low usage of the service at the time of streaming.
Source: ÄŒTK
