Despite Netflix's membership base increasing to 222 million last year, the streaming service's stock fell more than 20% in after-hours trade to its lowest level since June 2020, as viewer interest decreased.

Investors had thought that the economy would pick up a slight bit. However, the company's prediction for 2022 was a disappointment, with shares plummeting nearly 20% in after-hours trading.

Expected New Users Less Than Expert Predictions

In the three months leading up to March, the company said it anticipated to add only 2.5 million new members, significantly less than experts had predicted, BBC reported.

According to Netflix, their retention and engagement remain strong, but their acquisition growth has not returned to pre-COVID levels.

In the first quarter, Netflix said it expects to have a more back-end-heavy programming lineup, with significant launches in March. However, this is a resemblance to the image that Netflix had painted ahead of Q4. 

When Netflix launched new TV episodes and movies that had been pushed to the back half of the year, experts predicted a significant increase in viewers by the end of 2021.

Netflix, for example, produced high-performing material such as "Emily in Paris," "Don't Look Up," "Red Notice," and "You" during the quarter.

There is still room for growth, according to Netflix, as more and more people turn away from traditional television.

ALSO READ: LeBron James Apologizes on Social Media After Worst Loss So Far This Season; Promises to Fans That They Will Be Better

Rise of New Streaming Platforms Creates Competition

The subscription streaming service attributed the slowdown to greater competition from other companies, despite previous claims that Apple and Disney would not have a significant impact on growth.

"When it comes to entertainment time, consumers have always had a lot of options," the company stated.

"Competition has only increased in the previous 24 months as entertainment firms all over the world build their own streaming services."

As Netflix experiences the additional competition that affects its marginal growth, it said that it will continue to expand in every country and region where these new streaming options have been released.

Netflix said it is still early days when it comes to reaching the 800 million to 900 million households that use either broadband internet or pay-TV.

During a pre-taped earnings interview, co-CEO Reed Hastings said, "It's absolutely frustrating for us, the current slower growth."

Last week, Netflix announced pricing increases in the United States and Canada.

The basic plan's monthly pricing increased by $1 to $9.99 in the United States. It went from $13.99 to $15.49 for the standard plan and from $17.99 to $19.99 for the premium plan.

As customers become more captivated with Netflix's exclusive content, the company's objective is to raise rates.

Customer growth is declining, and price hikes can help to counterbalance it.

Investors were also updated on Netflix's gaming development.

The firm has been publishing games based on its most popular titles to its subscribers. The new games may help it gain insight into which characters are most popular, which could help it create its content in the future.

"We're now truly getting to learn from all of those games," COO Greg Peters remarked.

READ MORE: 'Encanto' Song 'We Don't Talk About Bruno' Overtakes 'Frozen's' 'Let It Go' as Top Disney Animated Hit Song

This article is owned by Latin Post.

Written by: Jess Smith

WATCH: Netflix stock sinks after subscriber outlook misses expectations - from Yahoo Finance