Though Netflix beat analysts’ financial expectations, the dour subscriber data caused the company’s stock to drop around 10 percent in afterhours trading. The company’s Q1 subscriber data is a stark contrast to Netflix’s Q1 2020 earnings report, when the company added over 15 million subscribers. The company stated that it had 208 million subscribers at the end of Q1 2021.
While Netflix sharply missed its own forecast for subscriber adds in Q1 2021, a subscription slowdown has long been anticipated. Netflix reaped abnormally large subscriber gains throughout 2020 due to the coronavirus pandemic, which incentivized many consumers to seek indoor entertainment such as streaming services.