Netflix reports a summer slump in subscriber growth

Netflix’s subscriber growth slowed dramatically during the summer months after surging in the spring fueled by pandemic lockdowns that corralled millions of people in their homes.

The summer slump came as more people sought distraction from the pandemic outdoors and major U.S. professional sports resumed play, offering other entertainment alternatives to the world’s most popular video streaming service.

The drop-off disclosed Tuesday in Netflix’s latest earnings report was more dramatic than management had warned it might be.