Number of Netflix Subscribers in U.S. Drops for First Time Since 2011

RIO DE JANEIRO, BRAZIL – Netflix ended the second quarter of this year with 126,000 fewer clients in the United States and a lower number of new subscribers in the rest of the world — less than expected by the market, according to the balance published on Wednesday, July 17th.

This was the first time for the world leader in video streaming to report a drop in the number of users in the U.S. market since 2011, when it split off this service activity from subscription DVDs.

Worldwide, Netflix has attracted 2.83 million new subscribers, but the figure was below the 4.8 million projected by investors for the period.

In all, the number of customers who paid for the service between April and June totaled 151 million.

The company’s net income fell by approximately thirty percent when compared to the second quarter of 2018, to US$270.7 million (R$1.06 billion). Revenue rose 26 percent, from US$3.91 billion to US$4.92 billion, slightly less than expected.

Netflix shares fell more than ten percent with the release of these results after the closing of the New York Stock Exchange, representing a drop in market value of more than US$17 billion.

Readjustment and help from “Stranger Things”

In a letter to shareholders, the company stated that it did not meet expectations because the content offered in the period had drawn fewer people than expected.

It additionally blamed the increase on the monthly fee, announced at the beginning of the year. The readjustment began to take effect in March, in Brazil.

For the third quarter, Netflix expects to capture seven million new customers, with the help of a new season of the supernatural thriller “Stranger Things”, released on July 4th. This is a more optimistic figure than the 6.6 million forecast by analysts, according to Reuters agency.

The series broke the streaming service audience record in its first four days, having been watched by 40.7 million users, according to the company.

New seasons for “La Casa de Papel” and “The Crown” are also scheduled for the period.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.