Netflix,announcing its second quarter report, did not earn as many users as it predicted in the second quarter of 2019. For the first time since 2011, the company suffered a loss in U.S. subscribers. The company lost nearly 130,000 subscribers in the United States in the second quarter. Globally, however, it won only 2.7 million global users after predicting it would add 5 million users. This means that the company is well below its own estimates.
CEO Reed Hastings attributed the situation, especially in the United States, to Netflix’s price hike and the lack of original content to attract users to the platform. Netflix’s user fee went up from $10.99 to $12.99. Payment plan changes on Netflix have come into force for both new and returning subscribers.
News of the user loss has also depreciated Netflix’s stock. Netflix shares fell more than 12 percent after sharing their second-quarter earningsreport. The company, whose shares rose 26 percent year-on-year to $4.92 billion, failed to meet its new user target. Netflix reached 2.7 million new users in the second quarter, reaching 5.45 million users in the same period of 2018.
Although Netflix is still a leader in the digital publishing industry, it can be said that the company’s executives know competition is coming. Disney and Apple will soon launch their own paltforms, and Netflix, which already has competitors such as HBO and Amazon, looks like it’s going to be waging a serious battle to keep its users. Because Disney, which will cost $6.99 a month, will have a large fan base and a family catalog. The platform will also integrate some of its most popular characters, marvel and star wars films into TV shows. Apple has already started spending money on its original content.