Netflix Reports First Drop – Netflix is the American media provider that allows users to watch Movies, Shows, and Web series. It a paid streaming service with which you can enjoy watching the exclusive content. It has a new series and movies always added to the content every week.
Now, Netflix reported a decrease in U.S Subscribers and also a slow growth rate at international level. It never happened for a decade in the United States, and this will make space for the competition of other streaming sites. Though it has increased in an international drop of subscriber’s from the USA has made it even.
Netflix Drop-In U.S Subscribers
Netflix has lost 130,000 paid subscribers from the United States, according to the reports. It given that it was the first the company has seen this drop from the past 12 years of its service. It was all due to the increase in the subscription prices in January 2019.
The streaming site has announced it is increasing the price from 13 to 18 percent that depends on the subscription plan. That raised the first quarter subscribers in the first quarter. But the second quarter of the year is not the best for Netflix as it lost the high number of subscriptions.
The new episodes of two Netflix Original series of “The Crown” and “Stranger Things” have arrived in this corner. It has not made any increase in the subscription as excepted. Netflix has not got any subscriptions but leads to disappointing figures in them.
Netflix Reports First Drop in U.S. Users
In addition to losing the domestic subscribers, Netflix has not got the excepted subscriptions to form the world wide. The loss in the local subscribers has dropped the shares in the stock market. Globally Netflix has 2.7 million subscribers in the quarter, which is very much less than the 5 million it has predicted and below 5.5 million added in the second quarter of the last year 2018.
This slow down will increase in the number of competitors those who want to take place. But the CEO Netflix stated that it is in a good position and programs leaving will not affect the members. It will spend more on original offering though it has excellent titles only single-digit length of streaming hours is considerable.
Many shows are going to take back their content rights away from Netflix, which includes the most-watched series like “The Office” and “Friends.” They will move to a new streaming service. “Friends” may leave by the end of this year and available on WarnerMedia’s new direct to consumer service, HBO.
The Netflix Company added that the loss in subscribers is more in the areas where the price is higher. Netflix raised the subscription price in the U.S and countries in Latin America and the Caribbean. Where Netflix bills in dollars for all the subscription plans.
In the context of high Profile shows, leaving Netflix, many people have commented on their views on the streaming service. Mr. Sarandos said that Netflix always have the “content Comes and content goes, which is very disappointing.
Netflix Results Second Quater
Mr. Hastings commented Netflix has said that they will have about seven million subscribers in the third quarter. So, the talent will offer for themselves among these streaming sites.
Netflix revenue has risen to 26%, that is $4.92 billion, which is very slightly below than the excepted of $4.93 by analysts. The company has given a lower profit of $271 million compared to $384 Million last year.
Although Wall Street Analyst Suggested that Netflix will have the company denies advertising support service. It also stated that it believes to have a more valuable business like competing for viewer satisfaction instead of concentrating on Ad Revenue.