Netflix reports lowest year of subscriber growth since 2015

Despite slashing the subscription cost in India and making shows and movies like Squid Games, Money Heist, Don’t Look Up and so on, Netflix subscribers growth has plunged globally as compared to last year’s growth. The video streaming platform gained 8.3 million paid members in Q4 2021. However, the company fell short of its expectations for new subscribers, as it was projected to be 8.5 million. For Q1 2022, it projects 2.5 million, down from 4 million last year. This is Netflix’s slowest growth since 2015, almost a 50 percent decrease.

After the earnings call, the stock of the media streaming platform plummeted by 20 percent. Investors are worried about Netflix’s growth.

Notably, Netflix recorded the best subscriber growth in over a year from the Asia Pacific region, especially from India and Japan. Asia is one of the most important markets for Netflix, where South Korea and Japan are the largest contributors. Netflix is trying to set a foothold in the Indian market by fighting off the competitors. Recently, it even slashed its subscription costs in the country. Prior to this, Netflix has also rolled out a mobile-only plan of Rs 199 just for users in India.

As per a statement by Netflix in the earnings call, “In December, we lowered our prices in India across all four plans. India is fairly unique because pay TV pricing is very low. We believe these new prices will make Netflix more accessible to a broader swath of the population – strengthening our value perception. Our goal is to maximize long term revenue in each
of our markets.”

Still, the company is struggling to fulfill its goal. In an earnings call, Netflix’s co-founder Reed Hastings said, “In every single other major market, we’ve got the flywheel spinning. The thing that frustrates us is why haven’t we been as successful in India. But we’re definitely leaning in there.”

The company is pretty optimistic regarding its long-term plans. As per a statement, “Even in a world of uncertainty and increasing competition, we’re optimistic about our long-term growth prospects as streaming supplants linear entertainment around the world. We’re continually improving Netflix so that we can please our members, grow our share of leisure time and lead in this transition.”

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