Netflix Growth Falls Drastically
CBJ — Internet video service Netflix says subscriber numbers missed the company’s projections by a wide margin.
Netflix released second-quarter earnings that showed it added 1.7 million subscribers in the quarter — 160,000 in the U.S. and 1.52 million internationally. The company had forecast an addition of 500,000 new American subscribers and two million internationally.
Management of the video streaming service blamed the poor performance in the April-to-June quarter on cancellations by subscribers facing price increases of as much as $2 per month as a two-year rate freeze expired.
“We are growing, but not as fast as we would like or have been,” Netflix CEO Reed Hastings wrote in a letter accompanying the Q2 results. “Disrupting a big market can be bumpy, but the opportunity ahead is as big as ever.”
Despite missing expectations on the subscriber front, the company managed to report earnings per share of nine cents, beating the consensus forecast by financial analysts.