iWorld

Netflix's first domestic subscriber loss in 8 years; misses international addition estimate

The company is to launch a lower-priced plan in India

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2019/07/18/netflix.jpg?itok=WJYlInKO

MUMBAI: The streaming giant Netflix witnessed domestic subscriber loss for the first time in the last eight years since it separated its DVD mail-order system and streaming platform. In the second quarter (Q2) of 2019, Netflix also added nearly 2 million fewer international customers than expected.

In contrast to the projected 5 million addition in international subscribers, Netflix only gained 2.7 million subscribers. On the other hand, the company also lost more than 100,000 subscribers in the US. The company in its letter to shareholders said that Q2’s content slate drove less growth in paid net adds than it anticipated. Netflix added that the missed forecast was more noticed in the regions where prices were hiked. However, the company also denied any impact of the increased competition on the Q2 results.

“Additionally, Q1, there may have been more pull-forward effect than we realised. In prior quarters with over-forecasts, we’ve found that the underlying long-term growth was not affected and staying focused on the fundamentals of our business served us well,” the company said in a letter to its shareholders.

The streaming platform has started the third quarter with a returning season of its hit show Stranger Things while the final season of another iconic show Orange is the New Black will be released in the quarter. The company expects the subscriber growth to return to more typical growth in Q3, and said it is seeing that in these early weeks of Q3. It also forecast Q3 global paid net adds of 7 million with 0.8 million in the US and 6.2 million internationally.

However, Netflix posted revenue of $4.92 billion, in-line with Wall Street’s $4.93 billion estimate, and earnings of 60 cents per share beating analyst consensus estimates of EPS 56 cents. “Much of our domestic, and eventually global, Disney catalog, as well as Friends, The Office, and some other licensed content will wind down over the coming years, freeing up budget for more original content,” the company added.

The company also highlighted building out its licensing and brand partnerships effort, which is optimising for fan and viewer engagement over revenue maximisation. It also noted during the launch of Stranger Things season 3, the platform partnered with best-in-class brands like Coke, Nike, Burger King, and Baskin Robbins to build deep connections with the fans.

More importantly, it announced a very important move in its important international market India in front of the product initiative. “After several months of testing, we’ve decided to roll out a lower-priced mobile-screen plan in India to complement our existing plans. We believe this plan, which will launch in Q3, will be an effective way to introduce a larger number of people in India to Netflix and to further expand our business in a market where Pay TV ARPU is low (below $5). We will continue to learn more after launch of this plan,” the company said.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/16/photogrid_plus_1631788277537.jpg?itok=nBjmHlHQ
Airtel unveils new prepaid plans bundled with Disney+ Hotstar benefits

Mumbai: Telecom major Bharti Airtel Ltd (Airtel) on Thursday unveiled its new prepaid mobile plans that come with high-speed data, unlimited calling, daily SMS benefits as well as one-year free access to streaming platform Disney+ Hotstar. "With a Disney+ Hotstar subscription, users will get access...

iWorld Telecom
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/16/photogrid_plus_1631770255900.jpg?itok=_o3x_xvf
Actus Digital announces new platform to optimise OTA & OTT monitoring solution

Mumbai: Actus Digital, a QA monitoring and compliance logging solutions provider, has announced a new version of its intelligent media monitoring platform. It will be demonstrated during online events, including NAB Amplify, the virtual event held in place of the 2021 NAB Show, the comapny said.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/15/deepak-choudhary.jpg?itok=S9PLbBhj
Laqshya Event Capital founder Deepak Choudhary joins Live 101 board

Homegrown digital platform Live101 has announced Deepak Choudhary as a new addition to its board of directors.

iWorld eNews
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/15/photogrid_plus_1631711116557.jpg?itok=IW6WLosf
Lionsgate India promotes Shreya Channa as VP, people office SA & SEA

Mumbai: Lionsgate India on Wednesday announced that Shreya Channa, who joined the firm earlier this year as VP - head of people office, to become a part of the expansion for South Asia (SA) and emerging markets of Asia. She will be reporting to Lionsgate MD Rohit Jain. Channa will work closely with...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/15/photogrid_plus_1631707393947.jpg?itok=8llDy6YN
Globopay acquires streaming rights to Serbian drama 'Civil Servant'

Mumbai: Global independent content distributor GoQuest Media has inked a deal with Brazilian streaming platform Globopay. As part of the deal, Globoplay has acquired exclusive streaming rights to the Serbian drama “Civil Servant”, a spy thriller produced by Telekom Srbija and Film Danas. Created...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/15/ar.jpg?itok=v6T17oD7
Rakuten TV turns to Amagi for FAST channel distribution

Rakuten TV has partnered with the cloud-based SaaS tech firm Amagi for channel distribution and monetisation across Europe. The video-on-demand (VOD) streaming service company has deployed Amagi’s free ad supported streaming TV (FAST) solutions.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/14/chingaari.jpg?itok=gkcmEszi
Chingari collaborates with OMTV for Indian cultural content

Short-video sharing platform Chingari has partnered with OMTV, a newly launched OTT channel and the brainchild of Blackboard Films, to cater to the rising demand of niche audiences wanting to connect with Indian cultural programmes.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/14/photogrid_plus_1631606454983.jpg?itok=tcKwvdlQ
Facebook taps Sanjay Gupta for director of int'l marketing role

Mumbai: Facebook has appointed Uber's former executive Sanjay Gupta as director of international marketing, as per his updated Linkedln profile. In his current role, Gupta will be based out of San Francisco, California. Gupta commands experience across diverse sectors, including tech, e-commerce,...

iWorld Social Media
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/13/photogrid_plus_1631523767872.jpg?itok=OoFtXCow
aha to premiere ‘Ichata Vahanamulu Niluparadu’ on 17 Sept

Mumbai: Telugu OTT platform aha has announced the global premiere of the romantic drama "Ichata Vahanamulu Niluparadu" on 17 September. Directed by S Darshan, the film stars Sushanth and Meenakshii Chaudhary in the lead with a supporting cast comprising Abhinav Gomatam, Priyadarshi, Ravi Varma,...

iWorld Over The Top Services

Sign up for our Newsletter

subscribe for latest stories

* indicates required