Netflix admits rival streaming services ‘may be affecting our growth’

The streaming giant gained 8.3 million extra paid memberships in the final financial quarter of 2021 having ‘over-forecasted’ 8.5 million.

Mike Bedigan
Friday 21 January 2022 00:53
Netflix notes increasing effects of rival streaming services on its growth (Netflix/PA)
Netflix notes increasing effects of rival streaming services on its growth (Netflix/PA)

Netflix has acknowledged that increasing numbers of rival streaming services “may be affecting our marginal growth some”.

The streaming giant gained 8.3 million extra paid memberships in the final financial quarter of 2021, having “over-forecasted” an increase 8.5 million – taking the total to 222 million.

Its total number of paying subscribers increased by just 18 million over the course of 2021 compared to 37 million in 2020, according to filings on the US Securities and Exchange Commission (SEC).

But shareholders were told that despite uncertainties the company was “optimistic” about its long-term growth.

It comes after a year of milestones for Netflix, with dark Korean drama Squid Game being named as the biggest TV show of the year (Aaron Chown/ PA)

“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,” the company said.

Consumers have always had many choices when it comes to their entertainment time – competition that has only intensified over the last 24 months as entertainment companies all around the world develop their own streaming offering.

“While this added competition may be affecting our marginal growth some, we continue to grow in every country and region in which these new streaming alternatives have launched”.

It comes after a year of milestones for Netflix, with dark Korean drama Squid Game being named as the biggest TV show of the year and two of its biggest ever film releases, Red Notice and Don’t Look Up.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in