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Netflix shares plunge as Global Growth falls short

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  • Subscriber decreases for the first time in 8 years, in the rest of the region, growth is slower than expected
  • 28 lakh subscriber pairs outside the US, analysts had expected 48 lakhs
  • The company said – Increasing prices in some areas affected growth

The results of the April-June quarter of the video streaming company Netflix were not good. 1.3 million subscribers in the US decreased. Analysts had estimated an increase of 3.52 lakh. Out of the US, the company added 28 lakh subscribers. Analysts expected users to grow by 48 lakh. The impact of the result was on the company’s shares. Netflix’s stock fell 12% in after-hours trading on Wednesday. This has reduced market cap $21.5 billion (Rs 1.5 lakh crore) to $138.5 billion.

In 2011, because of an increase in prices, they reduced subscribers in the US

Netflix has said that the number of subscribers in the areas where prices increase has been much affected. However, Reed Hastings, CEO of the company, has expressed the hope that more subscribers will add more this year than last year. The number of Netflix subscribers worldwide is 15.16 million. Let us know Netflix had increased the subscription price in Britain, Switzerland, Greece and Western Europe during the June quarter.

Earlier in 2011, Netflix users in the US had decreased. At that time the company had raised the prices. Also distinguished DVD by Mail and Streaming Services.

Netflix is ​​focusing on increasing the number of customers worldwide by making TV shows, movies, and documentaries. Clement Thibault, an analyst at Financial Market Investing.com, says that increasing competence does not guarantee that Netflix prices increase and the number of users does not decrease.

Netflix’s earnings in June quarter stood at $27.07 million (Rs 1,868 crore) and a revenue of $4.92 billion (Rs 33,938 crore). The company has expressed that, on July 4, we will add 70 lakh new subscribers in July-September because of the new season of Supernatural thriller Stranger Things released on July 4.

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