Netflix is in hot water after seeing a noticeable dip in subscribers. For the first time since 2011, Netflix has seen a loss in U.S. subscribers. During the second quarter, Netflix lost approximately 130,000 subscribers. Fortunately, the streaming service gained 2.7 million subscribers. While this is definitely a positive, Netflix had originally projected a gain of 5 million global subscribers.
In a statement to shareholders, CEO Reed Hastings wrote, “Our missed forecast was across all regions, but slightly more so in regions with price increases.” He adds, “We don’t believe competition was a factor since there wasn’t a material change in the competitive landscape during Q2, and competitive intensity and our penetration is varied across regions.”
The loss in subscribers comes just months after Netflix implemented a price hike for monthly subscribers. In addition, the streaming service has began losing and cancelling some of its most promising series. Over the last few months, the streaming platform has said goodbye to She’s Gotta Have It, Jessica Jones, Luke Cage and more. Going forward, Netflix will also say goodbye to fan favorites such as Orange Is The New Black, The Office and a few other hit series. Not to mention, HBO, NBC and Disney are also looking to enter the streaming game.
Despite the setback, Hastings remains confident in his company. He stated, “From what we’ve seen in the past when we drop strong catalog content (Starz and Epix with Sony, Disney, and Paramount films, or second run series from Fox, for example) our members shift over to enjoying our other great content.”
