Netflix: disappointing subscriber growth, weight competition – Tlc

Netflix disappointed expectations. The streaming TV giant closed the second quarter with 5.14 million new subscribers, one million less than the Wall Street forecast. And collapse in the stock market. The overall profits and revenues of the company is not enough to rebadure observers. Second-quarter revenue rose from $ 2.79 billion in the same period in 2017 to $ 3.9 billion, as a result of recent increases in subscription prices and price fluctuations. exchange. Net income climbed to $ 384.3 million, up from $ 65.6 million in the same period last year. But the subscribers are disappointing.

The United States increased by 670,000 units and internationally by 4.47 million: a leap of more than five million, still less than the 6.27 million expected by badysts. In the investor letter that accompanies the results, Netflix admits that the second quarter was good but "not stellar" and ended with 130 million subscribers. The "disappointment" in the number of subscriptions below expectations is related to the company's internal forecasts, says Netflix, which are sometimes too high and in other cases too low.

According to badysts, this is partly increasing competition to limit the growth of Netflix users, which identifies YouTube as one of its biggest rivals. & # 39; & # 39; HBO and Disney are evolving – focusing on Internet entertainment services & # 39; "Apple and Amazon are investing in content as part of a larger subscription ecosystem". & # 39 ;, explains Netflix. The giant expects the competition to increase further with the marriage between At & T and Time Warner and those between Fox and Wlat Disney or Comcast. But – he adds – & # 39; there is room here. for more protagonists.