In the second quarter of 2019, Netflix hemorrhaged 126,000 US subscribers, the first significant loss of customers since 2011 when the company broke up its business model into a two-pronged offering split between streaming and mail-out hard media. The company had also predicted that it would secure a further 5 million global subscribers during the same quarter, but actually only mustered 2.7 million.

CEO Reed Hastings cited the recent lack of new original content availability on the platform, as well as subscription price increases from January of this year jumping up from $10.99 to $12.99 for the US losses. Netflix does, however, believe that it will add a further 7 million subscribers globally in the third quarter due an anticipated cheaper mobile platform offered for India.

Netflix’s share price dived 10% on Wednesday as a result of the grim figures, and some believe that new streaming platforms on the horizon from Disney, Apple, NBC Universal and WarnerMedia will eat even further into its market share when they get here later this year and out into 2020. Others suggest that the ever-looming threat of advertising being introduced onto the website (even though Netflix denies this would ever transpire), and the predicted loss of popular shows like The Office in years to come, could also not only be the cause of the recent drop-off, but add to future woes for the company.

Netflix says it expects domestic business to pick up again this year, particularly with strong viewer numbers for recent shows such as the third season of Stranger Things and Our Planet.

Do any of our members think this drop in subscribers will become a pattern, or represents just a blip? Has anyone here dropped Netflix in the past few months? Please add comments below…

 

 

 

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EricSchulz

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Netflix would probably be the first I'd cut. So many of the "buzzy" shows and movies they offer exclusively I find to be just ok, but not necessarily worth spending the extra money on. Amazon Prime I'd keep because I use the shipping service often and they've upped their game on catalog movies and TV to stream. Plus, with Disney, NBCUniversal, etc. adding services I WILL be forced to choose based on content I like.
 

Tino

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A negligible drop in the bucket.

“a decline in U.S. subscribers that surprised many Wall Street analysts and sent Netflix shares falling 12% -- comes after Netflix attracted nearly 10 million subscribers during the first three months of the year, more than any other quarter since the debut of its video streaming service 12 years ago.

Netflix ended June with 151.6 million worldwide subscribers, far more than a current crop of video streaming rivals that includes as Amazon and Hulu.”

I think they’ll be fine. ;)
 

Tino

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And by the way it’s 126,000 not 130,000. Might as well be accurate.

Much ado about nothing. Clickbait news. Words like “hemorrhaging” and “dire”. C’mon.

So they gain 10 million and “lose” 126,000.

Sheesh. Dire indeed. :laugh:
 

Cranston37

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And by the way it’s 126,000 not 130,000. Might as well be accurate.

Much ado about nothing. Clickbait news. Words like “hemorrhaging” and “dire”. C’mon.

So they gain 10 million and “lose” 126,000.

Sheesh. Dire indeed. :laugh:
First of all, the article from Variety I posted in the other thread DOES give the 130k number, so it is not inaccurate for Martin to have posted that.

Second, while this is certainly not the end of the world, laughing it off as "much ado about nothing" and "clickbait news" is not accurate either.

It is perfectly reasonable and sane to be wary of news that caused a company's stock to fall 12% in minutes, then an additional 11% as I type this morning, especially with this weakness happening BEFORE Netflix lost a lot of its content and increased competition came online.
 
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Tino

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First of all, the article from Variety I posted in the other thread DOES give the 130k number, so it is not inaccurate for Martin to have posted that.
Martins own blog above states 126,000.
 

Tino

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Second, while this is certainly not the end of the world, laughing it off as "much ado about nothing" and "clickbait news" is not accurate either.
Let’s agree to Disagree. :)
 
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Cranston37

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Martins own blog above states 126,000.
Ok, let me ask you this Tino - if we've established that some media outlets give the 126k number, and some give the 130k number, then how are you arriving at the 130k being the inaccurate one?
 
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Tino

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Ok, let me ask you this Tino - if we've established that some media outlets give the 126k number, and some give the 130k number, then how are you arriving at the 130k being the inaccurate one?
Seriously I really don’t care

I just stayed my opinion that’s all.

No big deal. Cheers. :)
 

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To piggyback off this Netflix news...

We had been having a debate lately about the idea of rotating subscriptions. I argued that it's more common than you think and is a great way to enjoy all the available services at a fraction of the cost. Others thought nobody would bother to go through the hassle of doing it.

I will point out this quote from this morning:

Tim Nollen of Macquarie Research pointed out that “The magnitude of the miss this time appears more concerning in light of coming OTT competition from Disney, HBO/Warner, NBCU and Apple, as well as losing licensed programming,” he wrote in a note to clients.

"We do expect consumers to jump on and off these services more frequently, which may lead to more sub volatility over time, which raises the stakes on producing and timing popular shows and marketing them effectively.”
 
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I think Netflix's bigger issues are Net Neutrality threats and, yes, rotating subscriptions. Many Netflix subscribers have learned to activate their subscriptions only when relevant content is available. Netflix may not publish this sort of data but I'm sure they're aware of it and someone in a boardroom or corner office is pondering just how to stop it without an even larger [ and this time permanent] mass exodus.
 
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Josh Steinberg

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I read a NY Times article about this today and the article stated that Netflix was prepared for this kind of drop given the delay in Stranger Things returning, and expects the next quarter to pick up now that the show has new episodes.
 
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Will such losses increase the chances of Netflix selling "Roma" as a BD?
 

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I read a NY Times article about this today and the article stated that Netflix was prepared for this kind of drop given the delay in Stranger Things returning, and expects the next quarter to pick up now that the show has new episodes.
But the numbers they missed were Netflix's own estimate for the quarter, which they would have arrived at knowing what content they were going to release. Stranger Things announced a delay in July 2018, well before Q2 estimates would have been made...
 
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Cranston37

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Hollywood Reporter:

"Netflix shed $17 billion in value on Thursday as Wall Street punished the leader in streaming media for announcing a day prior that it added only 2.7 million subscribers in the most recent quarter, far shy of the 5 million it had previously forecast.

The weak subscriber additions are concerning, considering they came prior to competition from Disney, Warner Media, NBCU, and Apple streaming services."
 

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Netflix is the last streaming service I'd cut at present. I watch it the most, and watch it almost exclusively for their original content: Bojack Horseman, Maniac, Stranger Things, Altered Carbon, GLOW.

The only reason it might be the second to last to be cut is that I have Amazon Prime which gives me a free streaming service for paying for two-day shipping.
 

Mark Booth

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We dumped Netflix when it raised prices. We only watched it a couple of times a month, if that. We also dumped DirecTV Now for the same reasons.

Our #1 streaming service is Hulu. That and Amazon Prime is all we are paying for anymore. Traditional network television gets recorded over the air (with FAR better image quality than streaming or cable) and it's FREE!

Mark