The slow growth in India is frustrating Netflix

Greg Peters, COO and Chief Product Officer, Netflix said that the price change of the platform's service in India follows a whole set of activities that the company has been doing in India over the years of its operations.

On January 20, Netflix’s stock fell to $404.5 apiece in after-market trade on NASDAQ. This was a correction of over 21.5 percent — or $111.36 apiece — compared to the January 19 close of $515.86 apiece.

The fall also led to a decline of $45 billion in Netflix’s market value, and the reason for the dip is the streaming major’s forecast of 2.5 million subscribers in the current (January-March) quarter of 2022 (Q1 2022).

This is a substantial decline compared to the 4.0 million subscribers Netflix added in Q1 2021. For the record, Netflix closed 2021 with 222 million paid subscribers, of which 8.3 million were added in Q4 2021 — the actual addition was slightly lower than the 8.5 million it has forecasted for the period.

The share price reaction indicates the market participants could think that Netflix’s COVID-catalysed growth ride is fading.

“While retention and engagement remain healthy, acquisition growth has not yet re-accelerated to pre-COVID-19 levels,” Netflix said in its earnings release.

In the post-result webcast where Netflix CXO’s discussed the financial performance, India — where Netflix had lowered its subscription prices across all its plans on December 13 last year — was a subject of a longer discussion. Read more.

The Interview

In an interaction with YourStory, Vignesh Subrahmaniam, Principal Data Scientist, Intuit India and Anand Narayanan, Chief Product Officer, Simplilearn, delve into the factors driving the use of machine learning (ML) in India and leading companies to leverage the technology for business growth.

Editor’s Pick: Meet World U19 champion shuttler Tasnim Mir 

Recently, Tasnim Mir’s sensational run securing titles in three junior international badminton tournaments earned her the top position in the junior world rankings. Tasnim has become the first Indian to attain the top spot. 

The 16-year-old from Gujarat’s Mehsana district never imagined she could reach such heights within two years since she started playing in the junior circuit. She calls this accomplishment “a small step” towards it. Read more.

Tasnim Mir

Startup Spotlight

Helping children learn English 

Launched in 2016, Freadom equips children to learn to read in English in any country where it is an aspirational second language, via its state-of-the-art recommendation engine and built-in collaboration with Stanford University. 

It caters to children in the age group of three to 12 years and has content including stories, quizzes, live classes, storytelling sessions, news, activities, and speech games. Read more

News & Updates

Before you go, stay inspired with… 

Divij Bajaj, CEO and Founder, Power Gummies

“When you understand the need of the hour, you become the change of the hour.” 

Divij Bajaj, Founder and CEO, Power Gummies

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