The company reported fourth-quarter earnings on Thursday. The streamer beat on both the top and bottom lines, but its shares plummeted in after-hours trading on slowing subscriber growth.
The key numbers are here.
The Refinitiv survey of analysts had the earnings per share at 77 cents.
Revenue was $7.71 billion, which was higher than expected.
According to StreetAccount estimates, there were 8.28 million paid net subscriber additions.
When the company released new TV shows and movies in the back half of the year, analysts expected a big jump in consumers at the end of the year. "Emily in Paris," "Don't Look Up," "Red Notice," and "You" were some of the high-performing content released by the company.
In the fourth quarter, the company added 8.28 million subscribers. StreetAccount estimates had the company adding 8.19 million paid net subscribers.
The stock fell after hours because of slowing subscriber growth. In the fourth quarter of 2020, the company added over 8 million subscribers. The company said it will add 2.5 million subscribers in the first quarter of 2022, compared to 3.98 million it added in the first quarter of 2021. In the first quarter, there will be more back-end weighted content, with big premiere dates.
Increased competition from other companies was one of the reasons for the slowdown, though in the past it had said companies like Apple and Disney wouldn't have a negative effect on growth.
Competition for entertainment time has only intensified over the last 24 months as entertainment companies all around the world develop their own streaming offering. We continue to grow in every country and region in which these new streaming alternatives have launched.
Disney shares fell in after-hours trading.
The price increases were announced last week. The cost of the basic plan rose in the US. The standard plan went from 13 to 15.49 and the premium plan went from 17 to $19.99.
As customers become more entrenched in the company's exclusive content, prices will increase. Customer growth can be offset by price increases.
This is not a finished story. Please refresh for the latest news.
You can subscribe to CNBC on the internet.
All Rights Reserved © 2024
