Netflix has reported that it lost 126,000 subscribers nationwide during the second quarter of 2019, which is its first loss since 2011. In addition to this, it did not meet the growth expectations it had in other parts of the world.
Although the company managed to attract 2.7 million new members, but expected to get 5 million during this time period.
Given this, Netflix told shareholders that it expects to add 7 million new subscribers during the next three months, which would be more than the 6.1 million that they added in the same period of time last year.
The streaming company attributed this drop in subscribers to the quality of the content, which was not strong enough to attract more subscribers. In addition, they noted that the numbers of new members were lower in the areas where there was an increase in prices in the service.
These disappointing results occur after it was announced that Netflix will lose the rights to popular shows in early 2020, such as ‘Friends’ and ‘The Office’, since the former will be part of HBO Max, and the latter will go to the streaming platform of NBC Universal.
In addition, it should be noted that Netflix has lost much of Disney’s content, including many Marvel movies.
Therefore, things could get a little rougher for Netflix, as many companies are launching their own streaming services such as Disney +, AppleTV +, HBO Max and NBC Universal.
Apple has partnered with great Hollywood talent, such as Oprah, Steven Spielberg, Reese Witherspoon and JJ Abrams; and on the other hand, Disney will offer new content with its Marvel and Star Wars franchise.
Joe Robinson was born and raised in California but moved east when he was 25. Apart from running his own consulting firm. Joe spends his time as an instructor at Row New York. As a financial journalist, Joe has published stories for NPR Business Online, as well as Buzz Feed and Motherboard. As a contributor to Press Release Forum, Joe mostly covers markets and trade.