Netflix doubles its annual profit despite slowing the pace of subscriptions

Los Angeles (USA), Jan 20 (Latest).- Netflix closed 2021 with net profits of 5,116 million dollars, nearly double that of the previous year, in a year in which, however, the rate of new users, with 18 million compared to 37 million in 2020.

The Los Gatos (California, USA)-based company has 221.8 million subscribers to its “streaming” service worldwide, but as competition increases its ability to attract new customers continues slowing down, since in 2021 it registered the lowest growth of the last three years.

In addition, the company lowered the forecasts for the first quarter of 2022 and predicted that it will add 2.5 million subscriptions, far from the 3.9 it achieved during the same period of 2021.

“Although new competition may be slightly affecting our marginal growth, we continue to grow in all countries and regions where new alternative platforms have launched,” Netflix said in a letter to investors published Thursday.

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However, the explanations were not convincing on Wall Street and the company’s shares fell 18% to $412 per share in electronic operations after the New York markets closed.

The two factors to which Netflix attributed this slowdown are the entry of new options in the streaming market, such as Disney and Apple, and the lack of releases in the first half of the year, mostly due to the postponement of filming. during the toughest months of the pandemic.

The company’s best period was between October and December, coinciding with the premiere of global phenomena such as “The Squid Game”, “Red Notice”, “Don’t Look Up” and the last season of “Money Heist”.

During that last quarter of the year, the strongest for the television market, Netflix added 8.2 million subscribers and obtained a net profit of 607 million dollars compared to the 542 million it registered in the same period of 2020.

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The reduction in new registrations has not diminished the company’s profitability, since its annual net profits reached 5,116 million dollars, almost double the 2,761 million it earned during 2020.

In total, Netflix billed almost 30,000 million dollars in 2021, compared to 25,000 million in 2020, and increased investment in ‘marketing’ (2.5 million) and technology (2.2 million).

In fact, the company took advantage of its strength in the entertainment market.

“During 2021 we had the biggest TV show of the year (‘Squid Game’), the two strongest theatrical releases in our history (‘Red Notice’ and ‘Don’t Look Up’), and Netflix was the TV platform and the studio with the most awards and nominations at the Emmys and the Oscars,” he boasted in his report.