“As the marketplace grows more crowded, and the quality of competitors improves, Netflix will have to work harder to attract subscribers,” analyst Jon Giegengack says
Netflix’s second-quarter performance wasn’t pretty.
Nonetheless, Netflix still finds itself at the top of the streaming mountain, with more than 150 million global accounts. But Wall Street is more concerned with where a company is headed than where it currently stands.
So where does that leave Netflix? Battered, but not buried, according to several industry experts.
The streaming giant reported Wednesday the dreaded double whammy of acceptable, but not stellar, revenue growth, coupled with disappointing subscriber growth. Netflix added 2.7 million subscribers overall during the quarter — coming in 2.5 million customers shy of analyst expectations. Making matters worse, 126,000 U.S. subscribers dropped their service during the second quarter, a minor exodus that Netflix blamed on its recent price hikes.
Netflix’s stock price — which is typically attached at the hip to its subscriber numbers each quarter — took a beating in the aftermath, with Netflix shares dropping more than 10% on Thursday morning.
“It’s the first time in eight years they’ve lost U.S. subscribers, so psychologically that feels like an important thing,” Hub Entertainment Research analyst Jon Giegengack said.
Giegengack said the the U.S. subscriber losses…
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