Netflix: Subscription numbers decline
Author: Marcus Schilling
Share falls despite increase in profit and turnover
Netflix’s business regressed: While user growth of over five million was expected in the past quarter, only 2.7 million was achieved.
According to Netflix, the reason for this could be the price increases which were recently introduced in numerous countries. This applies in particular to the home market in the USA, where competition is already fierce. Here, almost 100,000 subscribers have unsubscribed from the streaming service.
Profit and sales developed positively. Compared to the previous year, sales increased by 26 percent to $4.9 billion and net income increased to $270.7 million. Although the figures exceeded financial analysts’ expectations, the market was in a negative mood: The share price fell by more than 13 percent in late trading.
Analysts had often suggested to the streaming service to increase its revenue through advertisements. But Netflix hasn’t considered this until now: “We believe we’re doing a more valuable business in the long run by staying out of the competition for advertising revenue and competing for viewer satisfaction,” the company states.