Shares of Netflix were down 10% in extended trading Wednesday after the company released its earnings report for the second quarter. The results showed a rare loss in U.S. subscribers and a large miss on international subscriber adds.
Here are the key numbers:
• Earnings per share: 60 cents, vs. 56 cents expected, per Refinitiv consensus estimate
• Revenue: $4.92 billion vs. $4.93 billion expected, per Refinitiv
• Domestic paid subscriber additions: A loss of 126,000 vs. a gain of 352,000, forecast by FactSet
• International paid subscriber additions: 2.83 million vs. 4.81 million, forecast by FactSet
Netflix acknowledged it will soon lose two of its most-watched shows, “The Office” and “Friends.” NBCUniversal announced in June that it plans to remove “The Office” from Netflix in 2021 and move it to its own streaming service. Earlier this month, AT&T’s WarnerMedia announced its new streaming service, HBO Max, will include exclusive rights to stream “Friends” when it launches publicly in the spring of 2020.
MacDailyNews Take: A loss of 126,000 vs. a gain of 352,000 is the U.S. and 2.83 million vs. 4.81 million in international subs are huge misses for Netflix just as Apple’s launch of Apple TV+ looms large.
Netflix’ appeal has always been lots and lots and lots of movies for about $10 a month.
Unfortunately for Netflix it’s content suppliers are getting into the streaming business and will not be renewing content access agreements. Over time this will leave Netflix with a library of absolute junk that absolutely nobody has interest in, and it’s own content library (that pales in comparison to those of its new competitors).
Each of those new competitors will continue to pump out new content, content that will never see the inside of Netflix. In 5 years time (if indeed it takes that long) Netflix is going to be a mere shadow of its former self.
But I thought they were masters of creating their own content? That…was the whole point of all this AI stuff.
Still too early to tell if the content suppliers will return after trying their hand at being the Stream Service for a while. This may also be an opportunity for Netflix to become a PaaS provider for the ‘smaller’ content providers that want to give it a go.
You mean Barry and his lovely bride Michael aren’t going to produce blockbuster hits?
Maybe their recent price increase had an effect after all. I cancelled the DVD portion of my subscription when the price went up, maybe others did too.
This has zero to do with Apple! That Apple TV+ is hardly appealing.
Netflix is loosing content and raising prices. I left cable because of rising prices. OTA is free except for the cost of the recording equipment that makes watching on your schedule possible while being able to skip commercials. These paid services start out with prices that attract people but then raise prices which turns people away!
I’m probably going to be cancelling Netflix soon. They have a lot of really good stuff but they have far more which is just rubbish and it’s becoming too hard to find the good stuff to the point where I almost can’t be bothered. With so many other services launching and offering exclusive content it’s also becoming too expensive to get access to all of it. People complained when you have to pay X to a single provider to get a load of channels you maybe didn’t watch, but the thing is you essentially had access to everything, it’s getting far too complicated now and it’s not as if you’re paying pennies for each service.
Also note that Netflix raised their prices again. I was close to canceling.
For movies Netflix is pretty bad nowadays. No depth in content.
For shows their own content is pretty good but access to other shows is limited.
Amazon video is free if you have Prime and they have a ton of back catalogue items for movies and better coverage for TV shows.
I think Amazon is the one to watch out for. Cable boxes carry it, works on the laptop plus they have their own stick.
I almost wish they’d offer a package where you just get Netflix’s own content and nothing else. The rest is so poor and often available elsewhere it just clutters the place up.
I don’t think it’s a rare loss in subscribers. I cancelled mine and have no intention to sign up again. Netflix need to get their heads out of their a$$es.
I quarantine this has nothing to do with aTv. Netflix has been having major problems with companies supplying content. That is, for years, that content has been withdrawn from Netflix. With Disney removing all of their content, it’s just going to get worse. When people try to watch something, and realize it’s not there, they’re unhappy.