Netflix warns that price increases will slow the growth in the number of subscribers

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Netflix

Netflix expects a slower growth in the number of subscribers in the second quarter, while the company broadcasting movies and TV shows continues to increase its prices.

The company posted solid sales and earnings for the first quarter, including 9.6 million new subscribers.

Netflix expects this number to slow down between April and June.

The company is raising prices in the United States, Brazil, Mexico and parts of Europe to fund the production of its own content.

Eric Haggstrom, a forecast analyst at eMarketer, said revenue from price increases will help Netflix differentiate itself in an increasingly crowded sector.

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The company has produced a number of critically acclaimed films and series, including Oscar-nominated The Crown and Roma.

Recently, Disney and Apple announced separately the launch of their own streaming services competitors.

Netflix said it was "excited to compete" with its new rivals, adding, "We do not expect these new entrants to significantly affect our growth."

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Disney

But in the meantime, he expects to see a "small short-term termination rate" of the number of subscribers, which will fall from 5% to 5 million, compared with 5.4 million in the second quarter of last year.

Netflix said that for the first three months of the year, profits rose to $ 344 million from the same period last year, with sales up 22 percent to $ 4.5 billion. .

While total revenue is expected to increase to $ 4.9 billion in the second quarter, revenue growth is expected to slow to $ 249 million.

Netflix said it was eagerly awaiting a "rich list of global content" in the second half of the year, including the third series of The Crown, starring Olivia Coleman, an Oscar winner, in the role of Queen Elizabeth II and Stranger Things.