- China vows 'cooperation' over ship linked to severed Baltic Sea cables
- Australian tennis star Purcell provisionally suspended for doping
- Asian markets track Wall St rally as US inflation eases rate fears
- Luxury Western goods line Russian stores, three years into sanctions
- Wallace and Gromit return with comic warning about AI dystopia
- Philippine military says will acquire US Typhon missile system
- Afghan bread, the humble centrepiece of every meal
- Honda and Nissan expected to begin merger talks
- 'Draconian' Vietnam internet law heightens free speech fears
- Israeli women mobilise against ultra-Orthodox military exemptions
- Asian markets track Wall St rally as US inflation eases rate worries
- Tens of thousands protest in Serbian capital over fatal train station accident
- Trump vows to 'stop transgender lunacy' as a top priority
- Daniels throws five TDs as Commanders down Eagles, Lions and Vikings win
- 'Who's next?': Misinformation and online threats after US CEO slaying
- Only 12 trucks delivered food, water in North Gaza Governorate since October: Oxfam
- InterContinental Hotels Group PLC Announces Transaction in Own Shares - December 23
- Melrose Group Publicly Files Complaint to the Ontario Securities Commission
- Langers edge Tiger and son Charlie in PNC Championship playoff
- Explosive batsman Jacobs gets New Zealand call-up for Sri Lanka series
- Holders PSG edge through on penalties in French Cup
- Slovak PM Fico on surprise visit to Kremlin to talk gas deliveries
- Daniels throw five TDs as Commanders down Eagles
- Atalanta fight back to take top spot in Serie A, Roma hit five
- Mancini admits regrets over leaving Italy for Saudi Arabia
- Run machine Ayub shines as Pakistan sweep South Africa
- Slovak PM Fico on surprise visit to Kremlin
- Gaza rescuers say Israeli strikes kill 35
- 'Incredible' Liverpool must stay focused: Slot
- Maresca 'absolutely happy' as title-chasing Chelsea drop points in Everton draw
- Salah happy wherever career ends after inspiring Liverpool rout
- Three and easy as Dortmund move into Bundesliga top six
- Liverpool hit Spurs for six, Man Utd embarrassed by Bournemouth
- Netanyahu vows to act with 'force, determination' against Yemen's Huthis
- Mbappe back from 'bottom' as Real Madrid down Sevilla
- Ali hat-trick helps champions Ahly crush Belouizdad
- France kept on tenterhooks over new government
- Salah stars as rampant Liverpool hit Spurs for six
- Syria's new leader says all weapons to come under 'state control'
- 'Sonic 3' zips to top of N.America box office
- Rome's Trevi Fountain reopens to limited crowds
- Mbappe strikes as Real Madrid down Sevilla
- 'Nervous' Man Utd humiliated by Bournemouth
- Pope again condemns 'cruelty' of Israeli strikes on Gaza
- Lonely this Christmas: Vendee skippers in low-key celebrations on high seas
- Troubled Man Utd humiliated by Bournemouth
- 2 US pilots shot down over Red Sea in 'friendly fire' incident: military
- Man Utd embarrassed by Bournemouth, Chelsea held at Everton
- France awaits fourth government of the year
- Germany pledges security inquest into Christmas market attack
Netflix stung by slowing subscriber growth
Netflix on Thursday reported cooling subscriber growth as fierce competition and the pandemic weigh heavy despite hits like "Squid Game" and "Money Heist."
The streaming service ended the year with 221.8 million subscribers, just below target, after booming during coronavirus lockdowns that kept people at home and on the platform.
Things are not looking better for the first quarter of 2022, with the Netflix earnings report saying the firm expected to only add some 2.5 million subscribers.
The market punishment was immediate, with shares of the California streaming giant losing some 20 percent in after-hours trading.
The last first-quarter expectation under 2.5 million subscribers came in 2010, when Netflix had a mere 13.9 million customers.
"While retention and engagement remain healthy, acquisition growth has not yet re-accelerated to pre-Covid levels," Netflix reported.
"We think this may be due to several factors including the ongoing Covid overhang and macro-economic hardship in several parts of the world," it added.
Most of the 8.3 million subscriptions added at the end of last year came from outside North America, according to the streaming service.
Netflix argued that it was holding its own against fierce streaming competition from the likes of HBO Max and Disney+, saying it "may be affecting our marginal growth some."
- Fierce competition -
But analysts from Parrot Analytics see a significant bite from Netflix's business.
"Apple TV+, Disney+, and HBO Max account for virtually all of Netflix's losses in global demand share for original content over the last two years," they said.
"The world's leading streamer faces more intense competition than ever heading in 2022," they added.
Analyst Rob Enderle said the markets are already a bit jittery at the moment with concerns over inflation and geopolitical tensions with China and Russia -- and competition is fierce.
"Netflix will increasingly find it hard to stand out and attract subscribers; even the major television networks have their own services now," he noted.
"When people are having trouble affording gas and groceries, it is going to be hard for them to justify another streaming service," Enderle added.
The platform benefited from the global success of the South Korean series "Squid Game," which had been seen by more than 142 million subscribers (about two-thirds of users) by mid-October, one month after its release.
Netflix confirmed a second season was coming, but did not give exact timing.
Fans meanwhile will have to wait until March for large-scale releases such as season 2 of the wildly popular "Bridgerton."
Facebook recently announced subscription price bumps in the United States, with the basic option now costing $9.99, and the most expensive going up to $19.99.
Meanwhile, Netflix's costs continued to rise as it spends on shows and marketing to fend off competition.
"Film is incredibly important for our members, which is why our ambition has always been to work with the world's best filmmakers and stars to create a wide variety of quality movies," Netflix said in the letter.
The pandemic stalled production of shows for a while, but Netflix has ramped back up its output of original programming, boasting hits such as "Squid Game," "Red Notice" and "Money Heist."
The company reported a net income of $607 million in the fourth quarter on revenue that grew to $7.7 billion.
A.Malone--AMWN