- Netflix's shares went down by 11 percent on Tuesday after the world's leading streaming services reported slow growth in its paid subscribers.
Netflix's shares went down by 11 percent on Tuesday after the world's leading streaming services reported slow growth in its paid subscribers.
The company explained that this slow growth in paid subscriber numbers during the first quarter can be attributed to slower content production during the COVID-19 pandemic.
While paid subscriber few to a less than expected number of 208 million, the company reported a revenue increase of 24 percent in the first quarter of this year in its quarterly earnings release.
The streaming site also reported a stunning profit of $1.7 billion with a revenue of $7.2 billion at the same time.
The company believes that its subscriber numbers will grow in the second half of the year as new TV show seasons are launched. Some of these most awaited seasons include 'You', 'Money Heist' and 'The Witcher'.
However, it is important to note that the entertainment has also evolved due to the COVID-19 pandemic with new competition emerging and media companies prioritizing streaming as opposed to traditional television. Netflix also faces competition from Disney, Amazon and others, who are constantly improving their services as well.
The company also explained that it is "working as hard as ever to continually improve our service so that we are the best entertainment option available."