Netflix is set to announce its first-quarter earnings on April 20, but there might be a problem. Even though Netflix has rolled out some very interesting movies and series in the past months, its earnings might still face stiff growth. This year might mark the first time in eight years that Netflix’s revenue growth will slow down, and there are several reasons for this.
The pandemic saw a rise in the revenue for Netflix, but times are slowly changing and so are things for Netflix. The crisis affecting Russia and Ukraine saw Netflix withdraw its services from Russia, this move will certainly take a big toll on the revenue generated by the company. While Netflix has lost a good number of subscribers from Russia, it might have to depend on other regions to generate more revenue. These regions are developing areas that are relatively new to Netflix, areas where Netflix cut down its prices to attract subscribers.
Another area that will alter Netflix’s first-quarter revenue is competition from other paid streaming applications. The likes of Hulu, HBO, Amazon Prime, and the biggest threat of them all, Disney+. Some of these applications have seen massive growth in the number of paid subscribers over the past years, and they might just be winning over Netflix subscribers.
All of these might amount to blows aimed at crippling the Netflix business, but it is important to note that Netflix is also betting big on gaming as it has introduced some games to its platform. This move might help move up Netflix revenue, experts, and analysts expect Netflix revenues to rise in the first quarter. Despite its rise, this first quarter will not be one of Netflix’s favourites when compared to previous years.