Netflix produced some greatest hits like Squid Game in 2021 yet company’s Q4 returns have shown that it has been struggling to meet its target growth. In Q4 of 2021, it projected to add 8.5 million new subscribers but it could only achieve the target to 8.3 million.
In Q1 if 2022 Netflix has added 2.5 million subscribers which was 4 million last year. The company executives have said that the numbers are low because it is in state of more back end weighted content in this quarter.
The numbers are low by 50% as compared to what it could achieve in 2020.
In an official statement Netflix 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.”
Netflix has a total of 222 million subscribers but its competitors like Disney have expanded at a very aggressive pace of growth. By the end of 2021, Disney had a total of 179 million subscribers.
Last month Netflix reduced its subscription rates by more than 50% in India to attract more subscribers. It was launched in India in 2016 and it has given series like Sacred Games, Delhi Crime, Bombay Begums, Paava Kadhaigal. But it has always struggled to raise the number of new subscribers in India. The price cuts might provide an edge to the company in face of its competitors like Hotstar, Prime Video and Voot.
The company announced to increase subscription prices across USA and Canada. It is also playing with a new revenue model. If you will open app on your mobile phone you will see a gaming section. It contains games evolved from Netflix original series. It will expand the gaming portfolio in 2022.