Netflix's user growth slows down amid the Coronavirus COVID-19 pandemic and growing streaming wars.
Netflix reported how many memberships were added in the last quarter. The report revealed 2.2 million new subscribers are now using the service, which is a drop from the same quarter last year when the streaming service can add 6.8 million new memberships. Overall, Netflix now has 195.2 million subscribers, which is 1 million less than what Wall Street analysts predicted.
Due to the lower than expected user growth, share prices for Netflix dropped. That said, 2020 is a great year for Netflix with huge subscriber growth over the last two quarters, mostly driven by people staying home due to the Coronavirus COVID-19 pandemic. In fact, COVID-19 has led to a 70% stock increase.
Netflix still added more memberships in the first nine months of 2020 than it did all of 2019. Also, streaming service predicts another 6 million memberships will be added over the next three months.
The streaming business is just getting more and more competitive. As we previously reported, Quibi is shutting down after only 6 months. The short-form mobile video startup, led by founder Jeffrey Katzenberg and CEO Meg Whitman, called investors on Wednesday to tell them Quibi was shutting down. Previously, Quibi hired a restructuring firm, which provided a list of options to its board of directors. One of the proposals included Quibi closing their doors.
It is unclear what will happen to Netflix as more companies ramp up their streaming efforts. But, one thing is clear, we are in the middle of an intensely competitive subscription-streaming market and the massive amount of free video in apps like Snapchat, TikTok, Instagram, and YouTube.
In relevant news, Netflix's Stranger Things is now casting and hiring background actors in Atlanta, Georgia.
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