Netflix Inc. expects to add just 2.5 million subscribers this quarter, falling short of Wall Street’s estimates and suggesting the streaming giant is entering a new phase of slower growth in 2022. The shares fell in extended trading.
The streaming giant signed up 8.28 million customers in the fourth quarter of 2021, according to a statement Thursday, beating Wall Street estimates but leading to the slowest annual growth since 2015. It’s now forecasting that slowdown will continue, at least for another quarter, with the outlook for the current period missing Wall Street’s projection for 6.26 million new subscribers.
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Sign-ups haven’t reaccelerated to pre-Covid levels, the company said, blaming a tough economy as well as lingering fallout from the pandemic. In addition, Netflix said its biggest shows of the current quarter don’t come out until March.