Netflix growth slows

The increase in the number of subscribers in the second quarter was 2.7 million, well below the 5.5 million reached in the second quarter of last year

Netlix has made public that in the United States it has lost 130,000 subscribers in the second quarter of this year, closing the month of June with 60.10 million.

Meanwhile, its international operations ended the second quarter with 91.46 million subscribers, registering an increase of 2.83 million, a figure that is below forecasts.

From Netflix they assure that "the missed forecast was in all regions, but a little more in the regions with price increases. We do not believe that competition was a factor, since there was no material change in the competitive landscape during the second quarter, and the competitive intensity and our penetration varies from one region to another (while our over forecast was in all regions). Rather, we believe that the second quarter content supply drove lower growth in paid net adds than we expected. In addition, the first quarter was so important For us (9.6 million net additions) there may have been more of a pull effect than we realized. In previous quarters, with over-forecasting, we have found that long-term underlying growth has not been affected and that staying focused on the fundamentals of our business has served us well.”

Globally, the increase in the number of subscribers in the second quarter was 2.7 million, well below the 5.5 million reached in the second quarter of last year and the 5 million that had been planned for Q2 2019.

The company is considering forecasts for over 7 million new subscribers for this third quarter (in Q3 2018 it exceeded 6 million).

Netflix achieved revenue of $4,923 million in the second quarter, 26% more than in the same period of the previous year, while its net income was $271 million, down from $384 million the previous year.