Netflix 2nd Quarter Results Show Signs of Stagnation

Netflix has witnessed an addition of 5.2 million subscribers during the second quarter of this year, which is roughly the same amount as last year. In the US, close to 670,000 subscribers were gained, while internationally 4.5 million subscribers were added during the second quarter.

Netflix
The second quarter financial results for streaming giant Netflix are showing signs of stagnation.  According to reports, Netflix has witnessed an addition of 5.2 million subscribers during the second quarter of this year, which is roughly the same amount as last year. In the US, close to 670,000 subscribers were gained, while internationally 4.5 million subscribers were added during the second quarter.

Revenue saw an increase of $3.9 billion from the last year’s $2.8 billion and net income stood at $384 million this quarter; rising from $66 million in the previous year.

However, subscriber numbers have disappointed Netflix’s expectations, standing at 6.2 million subscribers for this quarter.

In their financial earnings release, Netflix acknowledged having a “strong but not stellar” second quarter, however the company did boast about overtaking HBO with regards to their Emmy nominations this year, breaking HBO’s 17-year streak.

eMarketer, the market research company, had predicted that Netflix would have 147.5 million individual users this year, an 11 percent growth from 2017. It also expects Netflix would garner close to 74 per cent of the OTT video users in the US.

Commenting on Netflix’s financial results this quarter, eMarketer Principal Analyst Paul Verna said, "After four consecutive quarters of beating its own guidance, and analysts’ expectations on key metrics such as revenues, profits, and subscriber gains, Netflix disappointed with a weak Q2 2018. This is isn’t entirely surprising given rising competition in the video streaming market, where Amazon, Hulu, HBO and others are gaining share of subscription video dollars at Netflix’s expense. The market is also heating up with new entrants in the SVOD space, including Disney and AT&T."

He noted that despite the weaker-than-expected results, the company was expected to continue to be the leading video streaming service across the US, adding, "Netflix has a strong slate of original content that should keep it in the forefront among streaming services, and it plans to continue outspending the competition to develop TV programming and feature films. This is critical in an era when people increasingly choose streaming services on the strength of their content".

Netflix now has a total of 130 million international users, adding 7.4 million new subscribers in the previous quarter, a 50 per cent rise from the year before. For more updates, subscribe to exchange4media's WhatsApp Channel- https://bit.ly/2QUdLCK

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