Netflix subscriber numbers disappoint as prices rise
Shares fall 10% as company confirms markets with price rises fared worst as group undershoots
Actors Joe Keery, Finn Wolfhard, Natalia Dyer and Charlie Heaton pose during a photocall for the premiere of season three of the Netflix series Stranger Things. Photograph: AFP/Getty Images
Netflix added fewer paid subscribers than expected in the second quarter as the video streaming pioneer raised prices in some of its major markets, including Ireland, sending its shares down nearly 10 per cent in extended trading.
“Our missed forecast was across all regions, but slightly more so in regions with price increases,” the company said in statement.
Globally, the company added 2.7 million paid subscribers, compared with analysts’ estimate of 5.05 million.
“While our US paid membership was essentially flat in Q2, we expect it to return to more typical growth in Q3, and are seeing that in these early weeks of Q3,” Netflix said in a letter to shareholders.
The company said it now expects to add seven million subscribers globally in the current quarter, compared with estimates of 6.5 million.
Netflix stock is up 35 per cent so far this year, lagging only Facebook in the FAANG group.
Net income fell to $270.7 million, or 60 US cents per share, in the second quarter to June 30th from $384.3 million, or 85 cents per share, a year earlier.
Total revenue rose to $4.92 billion from $3.91 billion. Analysts on average had expected revenue of $4.93 billion. – Reuters