Netflix growth slowing
Streaming giant Netflix blamed the pandemic for “lumpiness” as it predicted a slowdown in new-subscriber growth on Tuesday.
Shares of the Los Gatos, Calif.-based firm, known for hits like “Stranger Things,” “Bridgerton” and “The Crown,” sank nearly 2 percent in after-market trading.
Netflix, headed by Reed Hastings, said it brought in 1.5 million new subs in the second quarter, besting estimates of 1 million, but cautioned of slowing growth ahead.
“COVID has created some lumpiness in our membership growth, higher growth in 2020, slower growth this year, which is working its way through,” the company said in a letter to investors. “We continue to focus on improving our service for our members and bringing them the best stories from around the world.”
Netflix said that in the third quarter it expects to add 3.5 million subs, falling short of analysts’ estimates of 5.5 million.