Are you still watching? Netflix shares fall 13% as growth grows News about art and culture

The streaming service added just 3.98 million subscribers in the first quarter, missing a Wall Street estimate of 6.29 million.

Mitigating a pandemic halt takes a far more serious toll on Netflix Inc.’s growth. than expected, and its shares fell as much as 13% on Tuesday.

The streaming service added just 3.98 million subscribers in the first quarter, missing Wall Street’s estimate of 6.29 million and its own forecast of 6 million. The current quarter will be even more challenging, and Netflix predicts a million new customers – a fraction of the 4.44 million projected by analysts.

Netflix has been warning for months that growth will slow after customers emerge from Covid’s hypertension, but few expected it to stop so dramatically. The first quarter of 2020 was the strongest in the company’s history, with 15.8 million new customers, and Netflix’s pace continued to be surprisingly fast in the fourth quarter.

In contrast, the last three months marked the slowest first quarter since 2013, when Netflix added about 3 million users.

The lack of new shows can also contribute to the decline. The company’s production slowed in the first quarter due to the outbreak of the pandemic, which led to delays in production. Netflix has managed to maintain its release schedule for the first few months of Covid’s lock-in, as it has already completed many shows. But the films and programs that were supposed to be in production last March, April and May had to stop, which led to the current shortage.

It all coincided with the strengthening of streaming competition, from Disney +, HBO Max and Apple TV + to newer entrants like Discovery + and Paramount +. Some are cheaper than Netflix, which raised prices in the US in October.

Europe is still a bright spot for Netflix. The streaming service added 1.81 million customers across Europe, the Middle East and Africa, leading the company. “Lupine”, a French thriller about the robbery, was the most popular new series of services this quarter.

Netflix has dropped to as much as $ 480 in extended trading, which would be at least 2021. Shares were up 1.6% this year through Tuesday in New York.