Netflix now blames COVID-19 after missing its growth forecasts in the last quarter.
It has attributed the decline to a post lockdown decline in interest in the streaming service and a pandemic-related mishap.
Netflix hit below the 1.75-million-mark analytics had anticipated and a fraction of the 10 million it added in the second quarter a year earlier after recording 1.54 million new subscribers, a slowdown in new productions.
COVID had created some lumpiness in our membership growth (higher growth in 2020, slower growth this year), which is working its way through.the comany said in a ststement.
The company stated that pandemic-related production hitches a year earlier signified hardly any new offerings in the first half of this year.
Further, Netflix said its slate of new programming will build through in the year.
Nevertheless, it has since announced its intentions to shift into gaming intending a runway of increasing investment and growth of all of its existing content categories.
Since we are nearly a decade into our push into original programming, we think the time is right to learn more about how our members value games.Netflix said.
The move comes as the changing viewing habits of people coming out of lockdown and intense competition posing a threat to its dominance in streaming.
Additionally, last week the company received 129 Emmy nominations for its shows.
They included The Crown, Bridgerton, and The Queen’s Gambit after it ended the quarter with more than 209 million paid memberships.
However, analysts caution of a slip in Netflix as its targeted audiences will move towards rival companies such as Amazon Prime Video, HBO Max, and Walt Disney’s Company Disney.