Netflix's growth slows down as pandemic strikes production levels

Lack of new shows on Netflix has contributed to a hit on its shares.

Video-streaming service Netflix has reported slower subscription growth, lead to a hit in its formerly-rocketing shares.

The streaming giant projected some six million new subscribers between January and March, but fell short with approximately 3.98 million people signing up for the service.

Netflix shares reportedly fell 11% in after-hours trading to $489.28, wiping some $25 billion off the company’s market capitalisation.

The revolutionary streaming service said the dip in growth could be in part due to a lack of new shows and predicts a recovery when sequels to popular shows return to screens.

This includes the release of new seasons from hit shows such as “You,” “Money Heist,” “The Witcher” and action movie “Red Notice,” among other titles.

The slump comes as unwelcome news after months of substantial growth.

When the Covid-19 pandemic began last year, much of the world was forced to retreat into homes due to restrictions to curb the spread of the infection. Naturally, this bode well for Netflix which saw an influx of some 15.8 million new subscribers as people searched for ways to stay entertained indoors.

Much of that growth reportedly came from Asia, with the region contributing 9.3 million new Netflix subscribers in 2020, an increase of about 65% over the previous year.

However, as the pandemic has halted production of many films and series, Netflix has projected poor customer growth in the first half of this year.

Netflix also faces increasingly stiff competition from new streaming services entering the market, such as the newer Disney+ which has already raked in 100 million subscribers in comparison to Netflix’s 207.6 million.

However, even with slow customer growth, Netflix has reported revenues of $7.16 billion and a net income of $1.71 billion.

“We had those ten years where we were growing smooth as silk,” Netflix chief executive Reed Hastings said, according to an AFP report.

Follow Doha News on Twitter, Instagram, Facebook and Youtube