Netflix's growth slows as its delayed price hike sets in

Our first real peek at the reaction to Netflix’s “ungrandfathered” pricing is here, as it releases numbers for the second quarter. What they show is much slower subscriber growth compared to the last couple of years, failing to meet the company’s own projections both in the US and around the world. Netflix predicted it would grow by 2.5 million customers in the quarter (500,000 in the US, 2 million internationally) and ended up adding a net 1.68 million customers, up only 160,000 in the US. In a letter to shareholders (PDF), execs noted media coverage of the delayed price hikes was “coincident” with customers leaving, but said the new prices “will provide us with more revenue to invest in our content to satisfy members.”


Source: Netflix Q2 2016 Earnings (PDF)

Source: Engadget - Read the full article here

Author: Daily Tech Whip

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