LOS GATOS, Calif. — Netflix’s net additions of paid memberships in the U.S.-Canada (UCAN) region slowed somewhat during the company’s fiscal 2021 first quarter, with 450,000 net adds, bringing its total paid subscribers in the UCAN market to 74.38 million, Netflix announced today while releasing its financial results for the quarter.
Overall, Netflix added close to 4 million global subscriber net additions in the three months ended March 31, 2021, bringing the company’s total paid memberships to almost 208 million, which represents 13.6% year-over-year growth compared to its total global subscriptions at the end of the first quarter of 2020, according to Netflix’s letter to its shareholders.
Netflix noted in the letter this was below its guidance forecast of 210 million global paid memberships by the end of the quarter, but Covid has made everything uneven, to say the least, over the past 12 months.
“We believe paid membership growth slowed due to the big Covid-19 pull forward in 2020 and a lighter content slate in the first half of this year, due to Covid-19 production delays. We continue to anticipate a strong second half with the return of new seasons of some of our biggest hits and an exciting film lineup. In the short-term, there is some uncertainty from Covid-19; in the long-term, the rise of streaming to replace linear TV around the world is the clear trend in entertainment,” reads the company’s letter.
Netflix’s total revenue was US$7.2 billion in the first quarter of 2021, representing 24.2% growth year-over-year compared to the same quarter of 2020. The company’s revenue for the UCAN region during Q1 2021 was US$3.2 billion.
Discussing the company’s overall financial results for the quarter, the letter says: “Average revenue per membership rose 6% year over year, or 5%, excluding a foreign exchange impact of +$80m. Operating income of $2 billion vs. $958 million more than doubled vs. Q1’20. This exceeded our guidance forecast primarily due to the timing of content spend. EPS (earnings per share) of $3.75 vs. $1.57 a year ago included a $253m non-cash unrealized gain from F/X remeasurement on our Euro denominated debt.”
To access Netflix’s letter to shareholders and Q1 2021 financial statements, please click here.
