Netflix Released Its First Quarter Report

Netflix released its first quarter report. Broadcasting giant Netflix reached 207.6 million subscribers.

The world's leading digital publisher announced its first quarter earnings report after the market close yesterday. The company, which gained 4 million more subscribers in the first three months of the year, reached 207.6 million subscribers in total. However, although the company has gained new subscribers, this figure seems very low compared to last year. So much so that the platform gained 15.7 million new subscribers around this time last year. Although increasing competition is shown as the reason for the awareness, Netflix does not participate in this. Netflix shows the decrease of original content it produces as the reason for this.

Original Netflix Content Down 20 Percent

During the coronavirus outbreak, the number of subscribers of the platform also dropped as original content production fell. Original Netflix content has dropped 20 percent since the same period last year. The publishing giant said that the emergence of the coronavirus in 2020 and the epidemic causing production delays in the first half of 2021 put a barrier to content production, causing the growth of paid membership to slow. Netflix, in the second half of 2021, will continue to create big hit content; Netflix also expressed that they are preparing to include new and high quality original content.

17 Billion Dollars Will Be Spent For New Content Production

The company announced in a letter sent to its shareholders for the production of new content that it will spend $ 17 billion on original content this year. The company also emphasized that this spending depends on a 'safe' return to ongoing vaccination and planned production on a global scale. Although it means that the company's plans may be disrupted, it seems that the company will make this expenditure.

Company's Revenue Increased 24 Percent

According to the 2021 first quarter earnings report announced by the company, Netflix's revenue increased 24 percent and reached $ 7.2 billion. The decline in subscribers did not reflect negatively on the company's revenues. The company is estimated to add only 1 million new paid members in the second quarter of 2021.

Netflix Shares Increased in Value

In the report released, the company earned $ 3.75 per share. Analysts expected this data to be $ 2.97 per share. Also, Netflix shares gained 1 percent during the year. The Nasdaq index, where the stock is traded, gained 6 percent.