The company CEO, Reed Hastings, explains the reduction of subscribers with recent price hikes, and he's most certainly right. However, Netflix isn't too worried, as the decrease was only around 126 000 users.
Compare this to the fact that Netflix gained around 2.7 million new subscribers around the world.
However, it's not a good day for the investors or the company, when they did expect increase in subscribers at home, and a 5 million increase worldwide.
Hastings also brought up the fact that second quarter of the year didn't have many high profile releases. Even with lackluster performance like this, he isn't still considering competition as a problem.
Netflix stock took immediately a slight dive, although nothing radical.
The company has probably better news next time around when the figures include the new viewership champ Stranger Things 3.
Official expectations are for 7 million new subscribers, we'll have to wait and see whether that'll be closer to the truth.
Written by: Matti Vähäkainu @ 18 Jul 2019 10:31