Netflix Subscriber Growth in 2021 Plunges by 50%—Despite ‘Squid Game’ Phenomenon

Netflix subscriber growth in 2021 was 50% lower than in 2020, falling short of the company’s growth forecast for the fourth quarter of last year.

Netflix hq

It comes despite the global hit series on the streaming platform, “Squid Game,” a South Korean thriller show.

Not to mention, according to The Verge, Netflix released its most-watched movies with a star-studded cast during the same time period, namely “Don’t Look Up” and “Red Notice.”

Netflix Subscriber Growth 2021

To be more specific, Netflix previously predicted that by the end of 2021, it would have welcomed 222 million new customers. However, the reality fell short of this projection, with only 221 million subscribers in the fourth quarter of last year.

Despite the fact that the streaming platform’s membership growth only fell short by a hair, Netflix investors are nevertheless upset.

Indeed, according to CNBC, the streaming service’s shares have dropped to their lowest level since June 2020 as a result of Netflix’s strong performance.

On Thursday, Jan. 21, shares of Netflix had fallen by 20% as of the time of writing. It comes just after the internet behemoth revealed its fourth-quarter earnings for 2021, offering light on its growth during that period.

Growth of Netflix in 2020 vs. 2021

Furthermore, Netflix’s performance towards the end of 2021 will be cut in half when compared to its bloated results in the later part of 2020.

Netflix vs. Competition

According to the streaming service, competition “has only escalated over the last 24 months as entertainment businesses all over the world establish their own streaming offering.”

Netflix’s New Website Ranks Top 10 Titles Weekly | ‘Squid Game’ No. 1 in Stream Hours

It is worth mentioning that other major entertainment companies, such as Warner Bros. and Disney, have aggressively entered the streaming sector.

According to TechCrunch, Disney’s streaming services, including Hulu and ESPN, performed admirably in the latter part of last year, with approximately 179 million overall users.

Netflix, on the other hand, still has roughly 222 million paying subscribers.

Meanwhile, Warner Bros’ streaming channel, HBO Max, stated that the last month of 2021 was its greatest in terms of views since its inception in May 2020.

However, Netflix confessed to its investors that rising competition could be a factor in its declining growth.

Aside from that, the business stated that it could be “related to a variety of causes, including the current Covid overhang.” Not to add that certain people all across the world are experiencing economic hardship.

Despite this, Netflix recently raised its subscription fees in the United States and Canada. Last year, it also introduced Netflix Gaming.