Netflix reports loss of paid subscribers in Q2 financial results

0 Comment(s)Print E-mail Xinhua, July 18, 2019
Adjust font size:

SAN FRANCISCO, July 17 (Xinhua) -- U.S. online streaming company Netflix Inc. said Wednesday it missed its target to increase paid memberships by 5 million in the second quarter of 2019 as previously forecast.

In its second quarter financial results released Wednesday, Netflix said the number of its paid members rose by 2.7 million, less than the figure of 5.5 million in the same period of last year.

The company blamed the loss of new subscribers partially on subscription price hikes in certain regions around the world.

"Our missed forecast was across all regions, but slightly more so in regions with price increases. We don't believe competition was a factor since there wasn't a material change in the competitive landscape during Q2," it said.

The company's stock dropped roughly 10 percent on the news.

The company noted that the lack of more original television shows and movies on the platform during the quarter also attributed to the sluggish growth.

"We think Q2's content slate drove less growth in paid net adds than we anticipated," it explained, adding that the number of U.S. paid members remained basically flat during the past three months.

The company's international paid subscribers added 2.85 million for the quarter, which missed the market forecast of 4.81 million.

Netflix said its revenue grew 26 percent in this quarter on a year-on-year basis to reach 4.92 billion U.S. dollars, compared to the figure of 3.9 billion dollars in the corresponding period of 2018.

Operating income increased to 706 million dollars in the second quarter, up 53 percent year-over-year from 2018, it said.

The company is projecting a stronger forecast for the third quarter, with an estimated 7 million global paid net addition of members, while its revenue guidance was set for 5.25 billion dollars.

It said the first two weeks of the third quarter are off to a solid start with the start of season 3 of "Stranger Things".

Netflix hopes its membership growth for the next quarter will be boosted by more new television shows and movies, such as the final season of the iconic series "Orange is the New Black," and a new season of "The Crown." Enditem

Follow China.org.cn on Twitter and Facebook to join the conversation.
ChinaNews App Download
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter