Netflix announced Tuesday (April 20) as part of its financial results that it closed out the first quarter of 2021 with 208 million paid memberships, which was 2 million short of the firm’s guidance forecast of 210 million paid memberships.
“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. 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,” the company wrote in its letter to shareholders.
In terms of product, Netflix rolled out a “Downloads for You” feature for Android in Q1 automatically downloads suggested movies and shows onto the mobile devices of customers after they enroll in the offering. As a result, customers can always have content to watch regardless of connectivity.
“Knowing that bandwidth and storage can be precious, this feature tries to choose only the most relevant content to download,” the company said in the letter.
And, in terms of competition, Netflix reported that additional new streaming platforms are rolling out. The company said in the letter that the trend supports its “vision that linear TV will slowly give way to streaming entertainment.”
“Despite our 10+ year head start, we are continually seeking operational and creative excellence; we’re working as hard as ever to continually improve our service so that we are the best entertainment option available,” the company wrote in the letter.
All in, Netflix posted $3.75 in diluted earnings per share (EPS) on $7.16 billion in revenue for Q1. The company’s top- and bottom-line results exceeded analysts’ estimates for $2.97 in EPS on $7.13 billion in revenue for the quarter.
Netflix previously reported as part of its fourth-quarter earnings that it had topped 200 million paid memberships, with 8.5 million paid net additions during that time.
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