Netflix falls short of subscriber target
Shares traded more than 20% lower in the premarket
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Netflix welcomed 8.3 million new subscribers during the fourth quarter of 2021, falling just shy of the 8.5 million the streaming giant had expected to bring in despite rolling out its two biggest releases ever, "Red Notice" and "Don't Look Up," during the time period.
DON'T LOOK UP, LEONARDO DICAPRIO as DR. RANDALL MINDY. Cr. NIKO TAVERNISE/NETFLIX © 2021 (Netflix)
NETFLIX'S DON'T LOOK UP' BREAKS RECORD FOR MOST HOURS VIEWED IN A SINGLE WEEK
The largest streaming service in the world still boasted 221.8 million subscribers globally at the end of 2021, but forecasted bringing in only another 2.5 million more in the current quarter. That's down from 4 million the same period a year ago.
The company's stock was down more than 20% in remarket trading.
The Netflix logo is seen on the Netflix, Inc. building on Sunset Boulevard in Los Angeles, California on October 19, 2021. (ROBYN BECK/AFP via Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NFLX | NETFLIX INC. | 872.60 | +7.01 | +0.81% |
Netflix has been fighting off increasing competition from other services such as Walt Disney Co's Disney+, AT&T's HBO Max, and Amazon's Prime, all of which are building on their offerings.
"Even in a world of uncertainty and increasing competition, we’re optimistic about our long-term growth prospects as streaming supplants linear entertainment around the world," Netflix said in a letter to shareholders release with its earnings. "We're continually improving Netflix so that we can please our members, grow our share of leisure time and lead in this transition."
Netflix CEO Reed Hastings. (Getty Images / Getty Images)
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Last week Netflix raised its prices for subscriptions in the U.S. and Canada, which together make up the company's largest customer base at 73 million. But last month, the company cut its prices in India, looking to remain competitive in the growing market according to The Wall Street Journal.
Netflix saw revenue growth of 16% to $7.71 billion in Q4, meeting Wall Street's expectations of $7.71 billion.