Netflix only adds 1.68 million subscribers, blames media

Netflix shares fell over 12 percent yesterday after the streaming giant announced adding just 1.68 million subscribers for the quarter, well below their guidance of 2.5 million.

The company also announced that cancellations were "slightly and unexpectedly" higher during the quarter, which saw Netflix enact a long-ago announced price rise. About 20 million users saw their subscription price rise by either $1 or $2 per month, which apparently is too much for Emmy-nominated original content.

Netflix confirmed the minor slow down both in the U.S. and abroad: "We are growing, but not as fast as we would like or have been." The company partially blamed the media for the miss, as well, citing massive negative press about the price rises, which were initially announced over a year ago.

Despite the challenges, Netflix still saw revenue increase by 28 percent year-over-year.

Source:
BBC

Written by: Andre Yoskowitz @ 20 Jul 2016 10:25

biglo30

Well I think they forgot to mention the backlash that they also received after they began blocking VPN proxies. This was a very big deal for many users especially the international users and users in Australia. The content that is provided in some other regions are VERY inferior the to the content that is provided for example in the US. I travelled to the Caribbean recently which is the latin America region and OMG, the selection was so small. So I can see why they are mad that they have to paid the same fee's for a much smaller, "sucker" catalogue of shows. They have been ignoring this in their statements only saying that bad media caused them to miss their goals but I'm sure the blocking of VPN also had an impact.

20.7.2016 11:30 #1

KillerBug

This just happens to coincide with Microsoft tricking/forcing countless windows 7/8.1 users into upgrading to Windows 10...an operating system with completely broken Netflix support. The only way to watch Netflix on Windows 10 is with a terrible MS browser that no one wants (IE or Edge) or with an even worse "Universal App" that doesn't even have a "Next Episode" button and which forgets where you were (if you exit a show during the end credits, it will restart that episode from the beginning instead of starting the new episode or at least starting in the credits again). Netflix doesn't seem to care that their app is garbage, nor do they seem to care that they no longer support Chrome or Firefox. Suddenly lots of older users are being forced into a far inferior experience while being told they have to pay more for it. Is it really any surprise that they are leaving? I spent almost a month on Windows 10 and the only thing that kept me from canceling Netflix was the fact that I "borrow" it from a friend. Thankfully I'm back on 7 now and Netflix works much better (like everything else)...but that isn't really an option for most Netflix users.

There is a point of critical mass for corporations. When they are small they know that every customer matters, as they grow they know that they can lose a customer here and there, but the danger is in complaints...one complaining customer can represent 100 that didn't even bother to complain and just terminated service. At some point, those 100 don't make a difference either but they are still concerned when hundreds complain about something. A good CEO never lets it get to that point, a decent one never lets it get past that point. Netflix has gone past that point. A million people can complain about something and they treat each one as an individual that doesn't matter; except as a group they have a huge impact. Netflix is there...and they are not a monopoly so that will become a serious problem if they don't do anything about it. If I had Netflix stock it would be sold.

20.7.2016 14:37 #2

Dragon3000

What is all the fuss about. On one side yes, Netflix didn't get their targeted number of subscribers, it is still 1.68 MILLION additional members in a QUARTER. That's still a decent amount. It is as if they said they lost that number of subscribers. I agree however that there was a lot of negative media on the price increase, but it wasn't THAT much of an increase. From what I understand Netflix have to be seen to block VPN proxies because of the contracts they have with certain film distribution companies. We can't blame them for this. I agree that there are a large number of programmes available in other countries, but for now we just have to respect what has been put in place. At the end of the day we have a choice, have Netflix or don't. Regarding the other comment on Netflix not working on Windows 10? I've got to say that I've not had any issues at all. The only thing that would requite you to use Edge is if you want to watch the content in 1080p, otherwise it's 720p which is clear enough surely.

ZX Spectrum 128K

22.7.2016 02:49 #3

SomeBozo

Originally posted by KillerBug: This just happens to coincide with Microsoft tricking/forcing countless windows 7/8.1 users into upgrading to Windows 10...an operating system with completely broken Netflix support. The only way to watch Netflix on Windows 10 is with a terrible MS browser that no one wants (IE or Edge) Come on you can't say no one wants "The Edge", i've heard a couple people say they like it.. But seriously it is so bad i'm working at Microsoft right now doing UI automation for Azure. We only test in Chrome because the edge is so good, and firefox is pretty much broken now :(

Sad to see that even within MS itself, Edge so good and and as well supported as it is... MS itself doesn't even consider using it in our test matrix which has to say something about how great it is... Reminds me Edge is so good i know a word that starts with "s" and end with "it". I thought i heard farmers normally put it on crops to fertilize them... So farmers might actually like Edge ;)

23.7.2016 15:13 #4

xnonsuchx

Originally posted by KillerBug: Windows 10...an operating system with completely broken Netflix support. The only way to watch Netflix on Windows 10 is with a terrible MS browser that no one wants (IE or Edge) or with an even worse "Universal App" that doesn't even have a "Next Episode" button and which forgets where you were (if you exit a show during the end credits, it will restart that episode from the beginning instead of starting the new episode or at least starting in the credits again). Netflix doesn't seem to care that their app is garbage, nor do they seem to care that they no longer support Chrome or Firefox.
??? Netflix works fine in Firefox on Windows 10 for me. When I'm unfortunate to be using Windows 10, that is! ;-)

23.7.2016 20:20 #5

ronhondo

I hate Netflix and windows 10. I'm happy to be rid of them. Two disgustingly greedy companies !

23.7.2016 22:37 #6

SomeBozo

Originally posted by xnonsuchx: Originally posted by KillerBug: Windows 10...an operating system with completely broken Netflix support. The only way to watch Netflix on Windows 10 is with a terrible MS browser that no one wants (IE or Edge) or with an even worse "Universal App" that doesn't even have a "Next Episode" button and which forgets where you were (if you exit a show during the end credits, it will restart that episode from the beginning instead of starting the new episode or at least starting in the credits again). Netflix doesn't seem to care that their app is garbage, nor do they seem to care that they no longer support Chrome or Firefox.
??? Netflix works fine in Firefox on Windows 10 for me. When I'm unfortunate to be using Windows 10, that is! ;-) Sorry i was referring to MS's own application and testing the UI for MS's own applications. It's sad when Google produces a better browser for MS's own applications when it comes to testing the UI. Firefox use to be my preferred browser but it is seriously broken right now for the work i do.

24.7.2016 02:11 #7

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