Video-streaming giant Netflix has reported a slowdown in subscriber growth, sending its shares tumbling. About 3.98 million people signed up for Netflix between January and March, well short of the projected 6 million. The company said a lack of new shows may have contributed to the shortfall, adding that it expected this to recover as sequels to hit shows are released. Netflix shares fell 11% in after-hours trading to $489.28, wiping $25bn off the company's market capitalization.The streaming service added 15.8 million new subscribers last year as Covid-19 forced people around the world to stay home. Much of that growth came in Asia, where Netflix added 9.3 million new subscribers in 2020, an increase of about 65% over the previous year. But the pandemic has proven a double-edged sword for Netflix, because it also disrupted its production pipeline.The company projected poor customer growth ahead, with an additional 1 million new streaming customers in the second quarter, far short of the previously predicted 5 million. Netflix also faces increasingly stiff competition from new streaming services entering the market. Disney+, a much newer streaming service, already has 100 million subscribers, compared with Netflix's 207.6 million.Even with sluggish customer growth, Netflix has reported revenues of $7.16bn and net income of $1.71bn. Netflix predicted stronger growth in the second half of the year when it releases new seasons of "You," "Money Heist," "The Witcher" and action movie "Red Notice," among other titles.
