Netflix reports first net subscriber loss in the U.S., misses global subscriber growth predictions

TechCrunch | 7/17/2019 | Staff
abbycraig (Posted by) Level 3
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Netflix’s continued subscription price hikes might finally have reached the end of some customers’ patience in the U.S., judging from an overall paid subscriber decline the company reported in its quarterly earnings for its fiscal second quarter 2019 results. The company’s overall growth for paid subscribers climbed by 2.7 million worldwide, but it actually added 2.83 million new subscribers around the world – while losing around 130,000 net in the U.S. to account for the difference.

Netflix’s price for consumers went up from $10.99 to $12.99 during its fiscal Q2 reporting period, which definitely could account for some of the fall-off. The company doesn’t seem to have anticipated such a strong reaction, however, since it had anticipated a net 5.0 million subscriber growth number as of last quarter, based at least in part on the 5.5 million it added in paying customers during Q2 2018.

Company - Growth - Regions - Price - Hike

The company specifically says that it missed its subscriber growth adds more significantly in regions where it introduced a price hike, vs. those where it did not – though its growth was lower than expected in all regions where it operates. You might think that some of its shedding of users in...
(Excerpt) Read more at: TechCrunch
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