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Netflix Q1 Paid Net Adds Below Forecast; Stock Down

Netflix had 3.98 million paid net additions in Q1, nearly 34% short of its Jan. 19 projection of 6 million and nearly 75% below the 15.77 net adds in Q1 2020, when the service thrived amid lockdowns. It’s forecasting a…

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million Q2 paid net adds. Netflix finished Q1 with 208 million paid memberships, up 14% year over year but below its January guidance forecast of 210 million, it said Tuesday. “We believe paid membership growth slowed due to the big Covid-19 pull forward in 2020 and a lighter content slate in the first half of this year, due to Covid-19 production delays,” said the shareholder letter. “We continue to anticipate a strong second half with the return of new seasons of some of our biggest hits and an exciting film lineup. In the short-term, there is some uncertainty from Covid-19; in the long-term, the rise of streaming to replace linear TV around the world is the clear trend in entertainment.” The stock fell 10.4% to $492.34 at 5 p.m. EDT.