Netflix doubles its profits in the first quarter, but its subscription rate slows

Netflix remains a leader in the streaming entertainment sector , although it did not reach the goal of exceeding 210 million subscribers.

The streaming  entertainment content platform Netflix announced on Tuesday profits between January and March of 1,706 million dollars (1,417 million euros) , more than double those achieved in the same period last year, although it did not reach the target of exceed 210 million subscribers.

In the first three months of its fiscal year, the firm based in Los Gatos (California, USA) made 7,163 million dollars, up from the 5,767 million registered in March of last year, and its shareholders pocketed 3 $ 85 per title compared to $ 1.61 a year ago.

Despite the fact that Netflix has managed to more than double its profits compared to the same period last year, the company only added 3.98 million subscriptions, far from the estimates that exceeded 6 million subscribers.

In a letter to investors, the company linked the slow growth with the lack of premieres in its catalog, since the pandemic forced the majority of filming to halt during the past year and postponed its release dates.

In addition, the platform anticipated that for the second quarter of 2021 the number of registrations will barely exceed one million, well below the 4.8 that were anticipated.

Marketing investment

Last year, Netflix added 15.8 million subscribers from January to March, the largest growth ever experienced by the company.

The absence of premieres and promotional activities has also meant that the investment in marketing remains at $ 512 million, similar to what was spent during the months of strict confinement in 2020.

“The delays in production caused by covid-19 in 2020 will make the list of premieres have more weight from the second half of 2021, with the return of a number of franchises,” the company anticipated.

However, although it remains a leader in the field of entertainment in streaming , Netflix will have to deal with other competitors that have consolidated this quarter as Disney +, owned by The Walt Disney Company, which exceeded 100 million subscribers March.

Netflix’s results did not convince investors on Wall Street and the company’s shares fell 10% to $ 495.50 per share in electronic trading after the closing of the New York parks.

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