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Home / Entertainment / Netflix misses Q2 subscriber targets, US subs fall after price increase – Variety

Netflix misses Q2 subscriber targets, US subs fall after price increase – Variety



For the first time, Netflix lost streaming subscribers in the US – and lost 130,000 net in the second quarter of 2019 – adding nearly 2 million fewer international customers than expected.

Paid subscribers grew by 2.7 million, including 2.83 million overseas, nearly half of Netflix's previous forecast of 5.0 million net gains (300,000 in the US and 4.7 million in the international segment).

Netflix shares fell more than 12% in after-hours trading. The company said the second-quarter subscriber results were the result of a weaker content plan in the quarter, which resulted in lower-than-expected net growth.

The Company Expects Third-Quarter Recovery and Expects US $ 800,000 and 6.2 Million International Increases Total of 7 million paid memberships (down from € 6.1

million in the third quarter a year ago). "Consumers around the world continue to move at a remarkable pace from linear television to Internet entertainment," it said in its shareholder letter.

Second quarter results include the impact of Netflix's US price increases, where the standard Two-HD Stream plan of $ 10.99 to 12 , $ 99 per month, a price increase that was completed during the quarter. The company also introduces pan-European price increases, including in the UK, Spain, France, Ireland and Germany.

"Our missed forecast applied to all regions, but slightly more for regions with price increases," the company said in announcing the results. Netflix said it does not believe that competition is a factor in its subscribers' lack of subscribers: "We believe that Q2's Content Slate has caused less growth in paid net growth than we expected."

Even though it's a lightweight one Netflix again denounced the display of numbers for a select few titles that had their debut in the second quarter.

These included "Dead to Me," a Dramedy series starring Christina Applegate (which saw 30 million households in the first four weeks), Netflix's unverifiable statistics, and Ava DuVernay's limited series "When They See Us." Households), which has just been nominated for 16 Primetime Emmy Awards. It has also been claimed that a romantic comedy film "The Perfect Date" starring Noah Centineo was viewed by 48 million households as a "global hit" in the first four weeks. According to Netflix, 32 million households in the first four weeks saw the Romcom "Always Be My Maybe" by Ali Wong-Randall Park.

Netflix announced the release of the third quarter, including the third and seventh and final seasons of "Stranger Things" of "Orange is the New Black" – the two shows that topped a recent poll in Netflix's Customers were asked to select their favorite items. Also in the current quarter are Season 3 of "Ozark", Jerry Seinfeld's "Comedy in Cars Getting Coffee," "The Dark Crystal: Age of Resistance," as well as Comedy Specials by Aziz Ansari, Whitney Cummings, and Katherine Ryan. Original films to be released later in 2019 include "The Irishman" by Martin Scorsese and Michael Bay's "6 Underground" action film with Ryan Reynold's 9.6 million streaming subscribers were so big in the first quarter that possibly a larger pull-forward effect than expected. Over the past few quarters, with inflated forecasts, we found that the underlying long-term growth was unaffected and that we continued to focus on the fundamentals of our business.

Netflix Revenue of $ 4.92 Billion Wall Street Forecast for $ 4.93 Billion and Earn 60 Cents Per Share (Analysts Proceed to Earn 56 Cents Per Share) ,

Next year, Netflix will face significant new competition, with Disney Plus and Apple TV Plus premiering. The fall and streaming services of WarnerMedia and NBCUniversal will hit the market in 2020.

With traditional media giants on the rise, Netflix will also lose popular licensed broadcasts like "Friends" (to WarnerMedia's SVOD service) and "The Office" (to NBCU's). Currently, the content of NBCU, Disney / Fox and Warner Bros. accounts for 60% -65% of Netflix display times, and much of this is being withdrawn over time, according to Wedbush Securities analyst Michael Pachter. "[W] We expect the migration of third-party content to be relatively slow," he wrote in a note last week. "However, it is unclear whether Netflix can replace it with a quantity and quality sufficient to maintain the loyalty of its current subscriber base." That would release "budget for more original content". The company claimed that even the most popular titles account for only a low single-digit percentage of streaming hours.

"After what we've seen in the past, when we share strong catalog content with our members (Starz and Epix with films by Sony, Disney and Paramount, or the second Fox series), they enjoy our other great content." Netflix quoted the coming According to the SVOD product launches of Disney, Apple, WarnerMedia and NBCU, competition in this sector is "harsh for all businesses and great for consumers." Netflix "and less of t We have so much room for growth. "


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