Netflix second quarter subscriber growth falls well short of forecasts

Screen | 7/18/2019 | Staff
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Netflix added only 2.7m paid memberships globally in the second quarter of 2019, well short of the 5m additions the streaming giant had forecast for the period, and less than half the 5.5m new subscribers who signed up in the second quarter of 2018.

The 2.7m overall gain came through the addition of 2.8m members in international markets but the loss of 130,000 in the US.

Netflix - Subscribers - US - Marketplace - Total

Netflix now has 60.1m paid streaming subscribers in the US and 91.5m in the international marketplace, for a global total of 151.56m.

In its letter to shareholders released on Wednesday (17) with second quarter financial results, the company attributed the figures not to increased competition but to a content slate that “drove less growth in paid net adds than we anticipated.”

Netflix - Revenue - Quarter - % - Year

Netflix’s revenue for the quarter, however, was up 26% on the previous year’s second quarter to $4.9bn, and operating income jumped from $462m to $706m. And the company predicted that in the third quarter its global paid net additions will be 7m – up from 6.1m on the previous year’s quarter - with 800,000 subscribers coming from the US and 6.2m internationally.

Third quarter growth will be boosted, Netflix...
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