The entertainment company, Netflix reports a crash in its shares in the entertainment industry as fears coronavirus boom will be over starts to sets in.
About 3.98 million people signed up for Netflix between January and March, well short of the projected 6 million.
The company said a lack of new shows may have contributed to the shortfall, adding that it expected this to recover as sequels to hit shows are released.
Netflix shares fell 11% in after-hours trading to $489.28, wiping $25bn off the company’s market capitalization.
The streaming service added 15.8 million new subscribers last year as Covid-19 forced people around the world to stay home.
Much of that growth came in Asia, where Netflix added 9.3 million new subscribers in 2020, an increase of about 65% over the previous year. But the pandemic has proven a double-edged sword for Netflix, because it also disrupted its production pipeline.
It projected poor customer growth ahead, with an additional 1 million new streaming customers in the second quarter, far short of the previously predicted 5 million. Netflix also faces increasingly stiff competition from new streaming services entering the market.
Disney+, a much newer streaming service, already has 100 million subscribers, compared with Netflix’s 207.6 million.
The entertainment company predicted stronger growth in the second half of the year when it releases new seasons of “You,” “Money Heist,” “The Witcher” and action movie “Red Notice,” among other titles.