For the streaming giant Netflix, 2022 is not off to a great start. New subscriber numbers are stagnating and not meeting expectations.
It may seem like Netflix has reached just about everyone they can. However, the company is always thinking about expanding into new markets. Finding new viewers. And, of course, adding new material to their lineup all of the time.
While 2020 and the pandemic fueled subscriptions to Netflix and other streaming platforms, those gains are slowing down. In 2020, the company was able to add 36 million customers. This growth fueled their stock numbers to rise. Then, throughout 2021, the company added 18.2 million customers. With the New Year upon us, it is time to turn their attention to this year.
2022 opened up and the company is not keeping up with expectations. The first quarter is not looking great for Netflix. So, the company has already started to temper their assumptions for what they think they can pull in. While they originally planned on adding almost 6 million customers from January to March of this year, that won’t be happening.
Instead, the streaming giant expects just 2.5 million new customers. With the news, the company’s stock took a 20% dive. So now, almost all of the gains made during the pandemic have been wiped out. The dropoff in customers is rather dramatic. The company has decided to respond in a number of ways to the news. However, there will have to be adjustments made in the future.
Netflix is the name in streaming. At least it used to be. Now, with all of the options available to consumers, they are looking for other answers. New content, new markets, and more are all on the table.
Netflix Raises Prices, Turns Toward Global Market
One of the responses to the stagnating subscription rates is to raise prices. At least, in the biggest market, Netflix has. The company is moving its price up in the United States and Canada. The price for the standard plan has gone from $12.99 to $15.50 a month. That doesn’t include the premium plan that is now going to cost $20 a month.
The company has cited a number of reasons for the drop in numbers. One of the obvious reasons has to be folks going out more. Movie theaters are open and people are going in mass once again. So, home watching isn’t as big as it once was during the early pandemic.
Amid the drop in subscription numbers, Netflix did post quite an earnings report. In just the fourth quarter alone last year, the company announced they pulled in $7.71 billion. While the company is looking to expand, its bottom line seems to hold strong as they rake in massive profits.