During the first three months of 2021, Netflix, the UK leader in entertainment services subscriptions, witnessed the slowest growth on record since the pandemic started.
Even though the US-based streaming company initially estimated to gain 6 million new subscribers in the first three months of the year, it only recorded 4 million new users, or half the number compared to the last quarter of 2020.
Netflix said that the reduction in subscriptions was mainly due to the slowdown of new content production. The other reason was the massive growth the company saw throughout 2020, which was bound to end sooner or later.
Last year, Netflix added 36 million new subscribers, surpassing 200 million users worldwide. The UK was no exception to this trend — over 15 million British households had a Netflix subscription in the third quarter of 2020 alone.
However, the decline in new subscribers is not just due to the pandemic. Netflix is also currently facing fierce competition from other streaming platforms like Apple, Disney+ and Hulu.
Netflix users can relax, though, as this setback will not stop the streaming giant. The company still managed to meet financial expectations for the quarter by generating a 24% increase in revenue compared to the previous year.
On top of that, they plan to boost rankings for 2021 by offering new series for some of their most popular programmes, such as The Witcher and Blacklist, as well as introducing big-budget feature films starring some of the biggest names in Hollywood.