https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-2570321291319216
Home Tech Netflix’s stock has taken a hit as a result of low subscriber turnout.

Netflix’s stock has taken a hit as a result of low subscriber turnout.

by Yvone Kendi
0 comment

Netflix stock fell by 20% after the company missed its subscriber-growth forecast. Netflix was expected to add 222.06 million paid subscriptions by the end of 2021.

The company added 221.84 million users but fell short of the 222 million mark. While this was not a major failure, Netflix’s future projections show lower subscription growth, which adds fuel to the fire.

“While retention and engagement remain healthy, acquisition growth has not yet re-accelerated to pre-Covid levels,” Netflix added.

The company also mentioned the global economic slowdown as a result of the pandemic. There are also numerous Netflix alternatives, such as HBO Max, Disney Plus, and Apple TV+.

Netflix [Selective] Price Increase

With slower growth projections, Netflix looks to its existing subscribers for additional fuel. In the United States and Canada, the streaming platform recently raised prices by as much as $2.

However, just a month before price increases in the United States, Netflix reduced subscription costs in India. We believe this is due to Netflix’s desire to ride the popularity wave and gain as many Indian subscribers as possible.

There’s also the fact that Netflix’s competitors, such as Amazon Prime and Disney+ Hotstar, are available in India for as little as INR 1,499 ($20) per year. Netflix, on the other hand, has monthly plans starting at INR 149 ($1.99). The key distinction is that Prime Video and Hotstar support multiple devices and provide high-resolution streaming.

However, Netflix’s stock has suffered as a result of the company’s inability to add enough subscribers. However, the platform must continue to produce original content, which necessitates increased spending.

Because you can’t add enough subscribers, markets like the United States and Canada are the first to compensate. So, if Netflix manages to reach a sufficient number of subscribers, there’s a slim chance of price cuts in the United States.

Meanwhile, users are spoiled for choice, as streaming platforms compete on price to add as many users as possible.

You may also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-2570321291319216
%d bloggers like this: