November 4, 2022
Netflix suffers first US subscriber loss

Netflix Suffers its First US Subscriber Loss, CEO Reed Hastings Blames Meh Content and Price Hikes

Netflix suffers first US subscriber loss, its Q2 earnings report reveals, and CEO Reed Hastings faults lackluster content and price increases…

Streaming king Netflix did not expand its subscription base as much as it projected in the second quarter of the year. In fact, it recorded a loss of US customers for the first time since 2011. (That’s when the company bifurcated its mail-order DVD system from its digital streaming platform.)

Netflix Q2 2019 Earnings Statement Discloses First Major US Subscriber Loss

Netflix lost about 130,000 consumers in the United States but gained just 2.7 million; the company projected a gain of 5 million new subscribers.

CEO Reed Hastings attributes the poor performance on recent price increases and a lack of interesting content to attract new customers. Hastings wrote in a letter to shareholders:

“Our missed forecast was across all regions, but slightly more so in regions with price increases. 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 streaming service hiked its prices in January, one of the largest to-date. Out of its original programming, which includes dozens of shows and movies, just one was a hit. Most of what Netflix built its business on is third-party content, which is now leaving the service.

Owen E. Richason IV

Covers social media, apps, search, and similar news. History buff, movie, and theme park lover. Blessed dad and husband.     

View all posts by Owen E. Richason IV →