The second quarter of 2019 doesn’t bring some good news for Netflix so far. The projected customer subscription became a tough target for Netflix and now the company is craving for more customers.
Netflix experienced loss in the US customers’ subscription for the first time since 2011 when the company separated its DVD mail-order system and streaming platform. According to Q2 reports, the streaming juggernaut is losing its customers and had lost 126,000 paid subscribers in the United States in the second quarter of 2019.
The hike in the price of Netflix subscription can be blamed for this drop in the numbers of customers. In January, the price of Netflix went up from 13 to 18 percent. The effect of this price hike can be seen on the subscriptions of the second quarter of the year.
Typically the second quarter of the years is the weakest time for Netflix and its not the first time that customers skipped their subscription but the numbers of customers are huge and cannot be ignored by the unannounced king of the streaming platform. Once the report of Netflix slipping customer base came out, its shares also dipped down for more than 10%. Though the company’s customer subscriptions rise up globally in the second quarter up to 2.7% still its too far from the projected target of 5 million new customers.
The new competitors of Netflix like Disney, Apple, WarnerMedia, and others are yet to make a debut in the market. The reaction of the customer after the launch of other entertaining streaming platforms will be worth watching.
Hastings wrote in his letter to shareholders, “Our missed forecast was across all regions, but slightly more so in regions with price increases.” Hastings wrote this letter to company’s shareholders to assured them that company will see growth in next two quarters as new seasons of Netflix successes like Stranger Things, La Casa de Papel (Money Heist), The Crown, and Orange Is the New Black are going to hit the screen.