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Weekly Roundups

Netflix Fails to Meet Subscriber Expectations in 1Q21

By MBN Staff | Thu, 04/22/2021 - 15:00

The rapid growth of Netflix's subscriber base seen during the pandemic last year appears to be slowing down as economies reopen around the world and competition in the streaming market heats up. The company giant added fewer paid subscribers than expected in 1Q21 due to production delays due to COVID-19. “It is just a little wobbly right now,” said Reed Hastings, Netflix Chairman and Co-CEO, during a video call with investors to discuss results. While analysts expected the company to add almost 6.25 million paid subscribers, the streaming giant added 3.98 million paid subscribers, according to IBES data from Refinitiv. 

“We believe paid membership growth slowed due to the big COVID-19 push forward in 2020 and a lighter content slate in the first half of this year due to COVID-19 production delays,” Netflix said in its report to investors.

Although competition with rivals such as Disney+, HBO Max and Amazon Prime has intensified, the company believes this did not affect its results. “We do not believe competitive intensity materially changed in the quarter or was a material factor in the variation as the over-forecast was across all of our regions. We also saw similar percentage year-on-year declines in paid net adds in all regions, whereas the level of competitive intensity varies by country,” the company noted. In the so-called streaming war, Disney+ has positioned itself as one of the strongest competitors for Netflix by reaching 94.9 million subscribers in 1Q21, which ended in early January,

At the end of 2020, Netflix hit 203.66 million paying subscribers, 21.9 percent more than a year earlier. In Latin America, subscribers increased 1.2 million to 37.54 million. In November, Mickey Mouse’s platform joined the Mexican market, in which Netflix leads with a 36 percent market share, followed by Amazon Prime Video with 22 percent, Claro Video with 14 percent and HBO Go with 11 percent, according to CNET.

More news below:

  • What is the state of the crowdfunding industry in Mexico?  Juan Carlos Castro, Co-Founder of Briq Fund, shares with MBN the trends that are already shaping the future of this sector. “Today, 21 platforms have officially filed to obtain licenses. Along the way, we have seen some platforms deciphering their own path, pivoting or even ceasing to exist. Now we will enter a new stage,” he writes. 

  • The state of California has bid farewell to several companies in the last few years. This trend has several reasons behind it, chief among them taxes and regulations. While companies have deflected to several destinations, Texas has been a popular choice because of laxer regulations, as reported by CNBC. This relocation toward US border states might just mean new-found opportunities for Mexico’s northern states. Read the full article here.

  • On Tuesday, Apple unveiled the next-generation iMac, which will come in seven colors, and also launched a new version of the iPad Pro, both with the M1 chip. The new computer will be available in red, green, purple, blue, yellow, orange and white. The new iMacs also feature a front-facing camera and a higher-quality microphone array. The company led by Tim Cook also announced podcast subscription services that aim to compete with Spotify.

  • Mercado Libre and Soriana are partnering to offer users the opportunity to do their grocery shopping from the Argentinian company's app. According to David Diaz Trujillo, Consumer Director for Mercado Libre Mexico, the supermarket category within its app is expected to be worth more than US$2.2 billion by 2024 in Mexico alone.

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