Monday, July 18, 2016

Netflix suffers from a big brake on gains subscribers, especially in the US – The Express

The action Netflix plunged more than 13% by 11:55 p.m. GMT in electronic trading following the formal session on the New York Stock Exchange.

The group has just state after closing a total of 83.18 million at the end of June subscribers, including 47.13 million in the United States. This represents a net gain of only 1.68 million subscribers compared with three months earlier.

We are growing, but not as fast as we would like or have done ” in the past, recognizes the leadership of the group in his quarterly letter to shareholders.

Netflix warned in April that its subscriber gains would slow this quarter after a record increase of 6.74 million in the first quarter when it announced its simultaneous launch in 130 new countries.

However, the group had at the time said it expects an increase of another 2.5 million subscribers, a level it has not reached the end.

Analysts said the disappointment is particularly strong in the US, where the service has gained about 160,000 subscribers when they hoped around 500,000.

The management of Netflix blamed the way the media had covered April the way he tilts his oldest subscribers on tariff plans launched recently. “ We believe that some members received information as a price increase to come ,” the letter to shareholders.

– Competition –

Netflix says however that the cons-performance was not due to market saturation, or the rise of competition represented by other services video and online TV like Hulu, Amazon or YouTube.

The original content from Netflix to help protect the company against churn, but the truth is that other providers -including Amazon- prove equally effective to develop and show movies and exclusive series “nuance Neil Saunders, president of the research firm Conlumino.

He said the growth of Netflix is ​​expected to resume in the US, but it will not find high levels of the past.

For the quarter began in early July when the service may suffer from the competition of the Olympic Games, Netflix anticipates a total gain of 2.30 million subscribers, of which only 0.30 million on its market domesticated.

The bad surprise on users globally overshadowed quarterly results better than expected.

Net income climbed 55% to $ 41 million in the second quarter, and earnings per share, which is the benchmark in the United States, stood at 9 cents when analysts expected only 2 cents.

The turnover for its part, increased 28% to $ 2.1 billion.

Netflix is ​​now present in almost all countries of the world, with the notable exception of China where he reiterated Monday he was considering his options. “ Unfortunately, this year the regulatory environment in China for our service becomes more difficult ,” he cautioned, however.

In many countries where it was launched in January, the service also aims initially a minority of people, interested in English programs. He did not want to make a “ Location ” (adding local programs, subtitles and / or dubbing) that progressively and in a “ economically prudent “.

He also said on Monday does not intend to raise the stakes facing the television for local programs in all countries of the world.

Instead, we complete our service selectively with local content “, including Netflix buys rights or that the product itself locally and languages other than English, such as the recent “ Marseille ” in France.

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