Netflix loses subscribers in the US, but not in the world

Netflix's financial results for the second quarter of 2019 were affected by the increase in prices and the arrival of few original contents.

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Netflix loses subscribers in the US, but not in the world
Netflix loses subscribers in the US, but not in the world

The publication of the financial results for the second quarter of 2019 caused a sudden crash (approximately 11%) in the value of Netflix shares. The reason is to be found in the performances that have proved to be below those provided by the analysts, especially as regards the number of subscribers.

Netflix, a Q2 2019 so-so

The company commented on the report citing the factors responsible for the drop in performance: a list of original productions less rich than usual and an increase in the price of subscriptions that is affecting some countries. It is likely that the Q3 will get better, considering the arrival in the catalog of the platform of content related to very popular shows like Stranger Things 3, the new episodes of La Casa di Carta and the last season of Orange is the New Black, all planned for the month of July.

First and foremost, the development of the platform in the United States is the key to discuss: -126,000 subscribers in three months, while for the period in question Netflix expected to gain 352,000. The arrival of competing platforms such as Disney+ could further complicate the situation. At the international level the number of subscribers grew by 2.83 million against the 4.81 million expected. In terms of revenue, on the other hand, the group saw $4.92 billion (+ 26% year on year) paid into its own funds in the quarter, in line with the expected 4.93 billion.

Netflix will also have to deal in the future with the removal from its catalog of some of the most successful series made available by third parties: The Office (NBCUniversal) will disappear in 2021 and Friends (WarnerMedia) in 2020, with the latter becoming an exclusive of the HBO Max competitor coming next year.

And as someone starts to talk about the possibility of seeing built on the platform of the first advertising content (perhaps in exchange for a price cut), for India is coming an economic subscription: should cost $ 4 per month, as already anticipated the last year, limiting the streaming resolution to 480p. At the moment it is not given to know if the initiative will be proposed subsequently in other countries at international level.

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