In the second quarter of 2019, Netflix hemorrhaged 126,000 US subscribers, the first significant loss of customers since 2011 when the company broke up its business model into a two-pronged offering split between streaming and mail-out hard media. The company had also predicted that it would secure a further 5 million global subscribers during the same quarter, but actually only mustered 2.7 million.
CEO Reed Hastings cited the recent lack of new original content availability on the platform, as well as subscription price increases from January of this year jumping up from $10.99 to $12.99 for the US losses. Netflix does, however, believe that it will add a further 7 million subscribers globally in the third quarter due an anticipated cheaper mobile platform offered for India.
Netflix’s share price dived 10% on Wednesday as a result of the grim figures, and some believe that new streaming platforms on the horizon from Disney, Apple, NBC Universal and WarnerMedia will eat even further into its market share when they get here later this year and out into 2020. Others suggest that the ever-looming threat of advertising being introduced onto the website (even though Netflix denies this would ever transpire), and the predicted loss of popular shows like The Office in years to come, could also not only be the cause of the recent drop-off, but add to future woes for the company.
Netflix says it expects domestic business to pick up again this year, particularly with strong viewer numbers for recent shows such as the third season of Stranger Things and Our Planet.
Do any of our members think this drop in subscribers will become a pattern, or represents just a blip? Has anyone here dropped Netflix in the past few months? Please add comments below…
Martin, a seasoned journalist and AV expert, has written for several notable print magazines. He’s served in key roles at Lucasfilm’s THX Division, NEC’s digital cinema division, and has even consulted for DreamWorks. Despite his illustrious career, Martin remains rooted in his passion for cinema and acting, with notable appearances in several Spielberg films, Doctor Who, and Star Wars: The Empire Strikes Back. He currently resides in San Francisco.
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