Six months after Netflix raised prices on its US streaming plans, the 22-year-old company reported its worst subscriber stumble in a decade. Netflix on Wednesday noted a loss of 130,000 US subscribers in the second quarter of 2019, sending its stock tumbling 13% in afternoon trading.
Analysts credited the fall-off to higher subscription prices—though Netflix also saw half the international subscriber growth it had predicted for the quarter—and Netflix blamed the decline in part on a lackluster content lineup. Looking ahead, the company forecasts a stronger third quarter thanks to new seasons of popular shows like Stranger Things.
But competition is coming fast and furious: Disney and Apple will introduce their streaming services this year, HBO announced its own surprise service last week, and Comcast and AT&T plan to roll theirs out in 2020. That competition also means that some shows that have long lived on Netflix are moving to other platforms. In a letter to shareholders, Netflix noted that its “Disney catalog, as well as Friends, The Office, and some other licensed content” will “wind down over the coming years”—AKA those shows will soon stream exclusively on forthcoming services from Disney’s (Disney Plus), WarnerMedia (HBO Max), and NBCUniversal’s platform, respectively.
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