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Opinion
David Wainer

Netflix Will Need More Than Price Increases to Win Over Investors

A warning about subscriber numbers this quarter suggests growth opportunities are slowing. The streaming giant’s shares tumbled after hours. 

Slowing growth.

Slowing growth.

Photographer: Robyn Beck/AFP via Getty Images

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Netflix Inc. delivered a slew of hits in the fourth quarter, with “Red Notice” and “Don’t Look Up” among its top three most-watched movies ever. But quarterly results underscored why programming success no longer automatically translates to a level of subscriber growth once common for the streaming giant.

Netflix added 8.3 million net new users globally, falling shy of the company’s projection of 8.5 million. But the bigger disappointment was Netflix’s projection that it will add a paltry 2.5 million subscriptions this quarter. Analysts had expected the company to sign up well over six million new subscribers in the current period, according to data compiled by Bloomberg. Netflix shares slid 20% in after-hours trading.