Netflix shares fall 13% as subscriber growth slumps in wake of Covid-19 boost

midian182

Posts: 6,782   +61
Staff member
What just happened? After seeing record growth in subscribers throughout 2020, Netflix has reported a drastic slowdown in the number of people signing up for its service. The news saw its shares fall as much as 13%, despite reporting revenue and profit that exceeded analysts’ expectations.

Netflix added 4 million new subscribers during the first quarter. That was lower than its own expectations of 6 million and fewer than half the 8.7 million Wall Street expected. The current quarter is predicted to be even worse; Netflix believes only about 1 million people will sign up in Q2, much lower than the 5 million it previously predicted and 9 million fewer than the same period last year. It would also mark the company’s slowest quarterly growth to date.

The pandemic has been responsible for both the growth in Netflix’s subscribers and the slowdown. With much of the world under stay-at-home orders, more than 36 million people signed up last year to take Netflix’s global membership numbers to over 200 million.

But Covid-19 also impacted production of Netflix’s original shows, leaving a lighter-than-usual content slate that it believes is slowing growth. The other factor is that as vaccines roll out around the world and restrictions lift in many countries, people are opting for outdoor activities after being stuck inside for so long.

Netflix is also facing increased competition from streaming rivals such as Disney+. It took just 16 months for the Walt Disney Company to attract 100 million subscribers to its service, thanks to shows including The Mandalorian and WandaVision.

Despite the slowdown, Netflix’s revenue was up 24% YoY to $7.16 billion during the three months ending March, but that didn’t stop shares falling 13% to $484.35 in after-hours trading, wiping $25 billion off its market cap.

Netflix believes its growth will pick up pace again during the second half of the year when new seasons of The Witcher, You, and Money Heist arrive, along with star-studded features including Red Notice and Don’t Look Up.

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Neatfeatguy

Posts: 299   +431
They're not putting out any decent content that I'm aware of. Same old crap or stuff so stupid it teeters on the border of being up there with dumb shows such as Sponge Bob....shows I wouldn't watch with someone else's eyes.

However, I've seen things like this not just from Netflix, but other networks. They have a few shows that are decent, overall ratings are good, but the network drops them after 2 seasons. Then to replace the discontinued shows time slots with other new shows that are just rehashed from similar series that are already plastered across on the network already. Watching multiple series of the same thing with different people isn't what I call good entertainment value.
 

ZipperBoi

Posts: 78   +131
They're not putting out any decent content that I'm aware of. Same old crap or stuff so stupid it teeters on the border of being up there with dumb shows such as Sponge Bob....shows I wouldn't watch with someone else's eyes.

However, I've seen things like this not just from Netflix, but other networks. They have a few shows that are decent, overall ratings are good, but the network drops them after 2 seasons. Then to replace the discontinued shows time slots with other new shows that are just rehashed from similar series that are already plastered across on the network already. Watching multiple series of the same thing with different people isn't what I call good entertainment value.
Hey you watch your mouth, early season Spongebob is God Tier you heathen. That being said, you are correct, they have not put out a series or Docu thats been "Really good" in a couple years imo.
 

Dimitriid

Posts: 537   +902
While their initial bet for producing their own content was a good choice, most comments I've heard about it is just how the quality of said shows has been decreasing and sharply so.

Meanwhile you've got every single media corp now trying to launch their own, separate digital content service and this means Netflix's library for both in house and third party content was bound to suffer.

They might still be able to make a comeback but if anything they should bet even heavier on producing their own content because it is looking like everything else under the entertainment sun will be gobbled up by Disney in 10 to 20 more years, including Netflix themselves if they don't prepare.
 

Neatfeatguy

Posts: 299   +431
While their initial bet for producing their own content was a good choice, most comments I've heard about it is just how the quality of said shows has been decreasing and sharply so.

Meanwhile you've got every single media corp now trying to launch their own, separate digital content service and this means Netflix's library for both in house and third party content was bound to suffer.

They might still be able to make a comeback but if anything they should bet even heavier on producing their own content because it is looking like everything else under the entertainment sun will be gobbled up by Disney in 10 to 20 more years, including Netflix themselves if they don't prepare.
I don't know about Disney+ and their material.

Most new Disney animation movies (over the past decade) have been pretty bad. My kids disliked most of them, especially the Frozen movies (gouge my eyes out and rupture my ear drums....what the hell is this crap?). My kids when they saw the first Frozen my daughter was maybe 8 and son was maybe 3. My daughter got about 20 minutes into the movie, said it was really stupid and went off to play with toys in her room. My 3 year old got about another 20 minutes into the movie and he said it was boring, got up and went to his room to play.

I wasn't impressed with the MCU series they've been putting out, either. Falcon & Winter Soldier isn't that good. A lot of the episodes, the story is very cliché and predictable. Wandavision, I didn't make it past the first episode until about 8 weeks after the show released. It took me a good dozen tries to watch the awful first episode and with how bad the next two episodes were I had very little hope the rest of the series was any good....at least I wasn't let down with my expectations being in the dumps, but at the same time I wasn't impressed by it.

I miss the dark side of Daredevil and The Punisher that Netflix was able to produce. If Disney would just embrace that side of things and bring them back for a proper send off, that would be worthwhile entertainment. If Disney can't shake that "goodie, good shoe" mind set they'll miss out on a lot great opportunities for MCU (X-Men and Marvel) shows and movies.
 

Soaptrail

Posts: 37   +43
The problem I keep having with Netflix is I add content to my list all the time and then when I want to watch something new I will waste an evening starting 3-4 shows or movies until I decided I gave them more than enough time and they are rubbish. Look at their hit movies like The Old Guard, it is fine but it still is not as good as hollywood movies. Hopefully Zack Snyder's Army of the Dead will be the first movie to rival Hollywood.
 
Investor Alert! Netflix news just came through the wire:
Cutbacks At Netflix! The Entire Quality Control department was cut at Netflix...
Witness the result....

Top trash/garbage/rotten/smelly film - Thunder Force. This film is beyond unfunny! Why does something this putrid get greenlit when truly deserving filmmakers can't get financial backing for GOOD films?
 

duckofdeath

Posts: 364   +459
They're not putting out any decent content that I'm aware of. Same old crap or stuff so stupid it teeters on the border of being up there with dumb shows such as Sponge Bob....shows I wouldn't watch with someone else's eyes.

However, I've seen things like this not just from Netflix, but other networks. They have a few shows that are decent, overall ratings are good, but the network drops them after 2 seasons. Then to replace the discontinued shows time slots with other new shows that are just rehashed from similar series that are already plastered across on the network already. Watching multiple series of the same thing with different people isn't what I call good entertainment value.
Isn't that an extremely narrowminded opinion that sounds more like something you want to believe for reasons the rest of us honestly doesn't care about? There are and have been plenty of great shows on Netflix. They've raised the bar several steps for the likes of HBO, who were slumping into releasing nonsense granny porn.
The stagnation is natural as both Disney+ and Paramount+ has pushed hard with marketing and high profile shows the last few months.
 

Neatfeatguy

Posts: 299   +431
Isn't that an extremely narrowminded opinion that sounds more like something you want to believe for reasons the rest of us honestly doesn't care about? There are and have been plenty of great shows on Netflix. They've raised the bar several steps for the likes of HBO, who were slumping into releasing nonsense granny porn.
The stagnation is natural as both Disney+ and Paramount+ has pushed hard with marketing and high profile shows the last few months.
I've tried watching a bunch of the newer movies they've pushed out, even ones that I should like (action type movies, comedy type movies) and most of them I get about 30 minutes into it and they're just awful. If the first 30 minutes are any indication, the rest of the movie will follow suit.

Just because I don't like it doesn't mean you won't. Assuming someone is narrow minded because they don't enjoy what you find entertaining is just shallow.

Like what you want, but I don't think Netflix has been producing anything really worthwhile as of lately.
 

McMurdeR

Posts: 276   +262
I don't think the subscription hikes help, and the front-end still needs work after all these years, but Netflix still releases more new content than it's competitors, such as it is.
 

duckofdeath

Posts: 364   +459
I've tried watching a bunch of the newer movies they've pushed out, even ones that I should like (action type movies, comedy type movies) and most of them I get about 30 minutes into it and they're just awful. If the first 30 minutes are any indication, the rest of the movie will follow suit.

Just because I don't like it doesn't mean you won't. Assuming someone is narrow minded because they don't enjoy what you find entertaining is just shallow.

Like what you want, but I don't think Netflix has been producing anything really worthwhile as of lately.
Do you go to the cinema like that too? Randomly try watching things to see if you like them? Why would you watch content on Netflix any way different than other places? Yes, Netflix offers a lot more varied content than any other streaming service. It doesn't mean you automatically like everything they show.
 

Geralt

Posts: 278   +327
TechSpot Elite
I've tried watching a bunch of the newer movies they've pushed out, even ones that I should like (action type movies, comedy type movies) and most of them I get about 30 minutes into it and they're just awful. If the first 30 minutes are any indication, the rest of the movie will follow suit.

Just because I don't like it doesn't mean you won't. Assuming someone is narrow minded because they don't enjoy what you find entertaining is just shallow.

Like what you want, but I don't think Netflix has been producing anything really worthwhile as of lately.
Me too. The new content is awful. The last s*** I tried to watch is starred by two fat women with superpowers. What a p of s!!!!!!!
 

wiyosaya

Posts: 5,911   +4,154
Hey you watch your mouth, early season Spongebob is God Tier you heathen. That being said, you are correct, they have not put out a series or Docu thats been "Really good" in a couple years imo.
I guess you are not into "My Octopus Teacher". I thought it was really good.
Me too. The new content is awful. The last s*** I tried to watch is starred by two fat women with superpowers. What a p of s!!!!!!!
Maybe that was not the best of choices? What were you expecting? IMO, they have some excellent anime, and "The English Game" was excellent.

Tough crowd here. I can only imagine what everyone does like to watch. ;)
 

wiyosaya

Posts: 5,911   +4,154
I miss the dark side of Daredevil and The Punisher that Netflix was able to produce. If Disney would just embrace that side of things and bring them back for a proper send off, that would be worthwhile entertainment. If Disney can't shake that "goodie, good shoe" mind set they'll miss out on a lot great opportunities for MCU (X-Men and Marvel) shows and movies.
Definitely with you on this. I might even subscribe to Di$ney+ if they were to do something like that - Cloak and Dagger, IMO, was excellent also. However, Di$ney+ I think has said that the want to be a family streaming service. :poop:
 

Neatfeatguy

Posts: 299   +431
Do you go to the cinema like that too? Randomly try watching things to see if you like them? Why would you watch content on Netflix any way different than other places? Yes, Netflix offers a lot more varied content than any other streaming service. It doesn't mean you automatically like everything they show.
Again, stop assuming. For the record, I don't go to the movie theaters....too many asshats doing stupid $hit and being disruptive for me to warrant spending money just to have my time ruined.

As for Netflix, I take the minute or two to watch the preview and if the movie looks promising I'll watch it. However, that doesn't mean the movie will actually be any good if it doesn't live up to the preview.
 

Watzupken

Posts: 200   +178
To be honest, I don't see much point keeping your subscription active with Netflix all the time. The content don't get refresh drastically from month to month and so it make sense to subscribe when there is something that you would like to watch. After all, prices for subscription have been increasing, so not surprising people will stop their subscription at some point.