Netflix Lose Subscribers After Price Increase
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Netflix hares have fallen rather hard after the streaming service gain fewer subscribers than they thought they would ahead of US prices.
The company has added 1.68 million users in the last three months to June. Nearly a full million behind their predicted number of 2.5 million. It was said that the sub cancellations rose “slightly and unexpectedly”.
These numbers have sent Netflix shares spiralling down by 13%.
Netflix admitted that their growth was slower than they would have liked: “We are growing, but not as fast as we would like or have been.”
The sub drop could be due to a number of things, but because of it, up to 20 million subscribers could have to pay another $1 or $2.
The sub drop has not been fully explained yet, but it could be due to the lack of shows on demand, or the fact that competitors like Amazon Prime and Hulu offer more for the price. Plus there is the challenge of localising its offerings to certain countries, as it remains shut in China due to a “more challenging” regulatory environment.
Netflix offers some really great shows, however, including Orange is the New Black, Daredevil, Jessica Jones, Orphan Black and many more.