Netflix Exodus: Streaming Giant Reports Loss of 126K Domestic Subscribers

[Tsing]

Netflix's dominance in the streaming space is beginning to show its first cracks. The company admitted on Wednesday it had managed to lose 126,000 U.S. paid subscribers, its first loss since 2011.

Analysts are shocked because they expected a 352,000 gain. Netflix also failed to meet its forecast for global subscriber growth by 2.3 million.

Shares plunged 10% as a result, with the streaming giant losing $17 billion in value today. Netflix blames its failure on recent price hikes and an inadequate content slate.

Netflix said it will have a more robust content slate in the third quarter to attract more subscribers, forecasting 7 million paid net adds and revenue of $5.25 billion. The company said its TV show “Stranger Things” has already had strong viewership for its latest season, and it anticipates new seasons of “The Crown” and “Orange is the New Black” will be similarly popular.

 

[Dan_D]

One of my problems with Netflix is that their library of non-original content seems to be shrinking by the day as studios, TV stations, and other entities decide to start their own streaming services. Netflix has some good original programming, but I'm not interested in probably the vast majority of it.

 

[Peter_Brosdahl]

One of my problems with Netflix is that their library of non-original content seems to be shrinking by the day as studios, TV stations, and other entities decide to start their own streaming services. Netflix has some good original programming, but I'm not interested in probably the vast majority of it.

I totally agree. It's finite nature has become increasingly more obvious over the 1-2 years but all the while those price hikes just keep coming. At this point, once Disney and Warner are up and running, it'll be a hard choice for us to keep. We've got the premium and paying ~$18 a month for it as is seems a bit much especially since their 4k quality is only marginally better than 1080p physical and I've yet to get a single movie/show with Atmos despite them saying premium would get it. I've had a hard time telling the difference between their HDR vs DolbyVision as well. We'll see about the future but it's definitely not as appealing as it used to be.

Their original programming is consistently inconsistent. Really does seem like the throw at the wall and see what sticks approach en masse.

 

[Zarathustra]

Stranger Things didn't hit until Q2, which probably helps explain it.

One thing they don't seem to account for is people signing up for a short time, binding a series and then canceling. They seem to have this expectation that people sign up and stay signed up. It suggests they don't understand their market very well.

 

[Brian_B]

I blame Kevin Spacey. Also competing against Game of Thrones.

Stranger Things 3 will help, but only so much.

If Disney rolls out halfway decently, Netflix is in huge trouble. I don't think Apple, CBS, HBOMax, or anything else are really going to dent too much.

Netflix really just needs to QC their own original content a bit better. They have some really good shows, but for every one good show, there are about 20 that are just WTF trash. If they are more selective on what they spend their cash on, and the quality goes back, I think the subs come right back with it.

 

[northrop]

I blame Kevin Spacey. Also competing against Game of Thrones.

Stranger Things 3 will help, but only so much.

If Disney rolls out halfway decently, Netflix is in huge trouble. I don't think Apple, CBS, HBOMax, or anything else are really going to dent too much.

Netflix really just needs to QC their own original content a bit better. They have some really good shows, but for every one good show, there are about 20 that are just WTF trash. If they are more selective on what they spend their cash on, and the quality goes back, I think the subs come right back with it.

ST3 will help, but only for a month when everyone will binge watch it and then be done with it again. Same with Ozarks, or anything else for that matter. That said, I totally agree with you on the QC aspect of things. They have way too much crap, but then so does Amazon (I think I can count on fingers of one hand the number of different AZ Original series I have watched)... the difference being, Amazon offers a lot more for basically the same fee, which makes it a much better deal. Speaking of keeping crap... Netflix needs to reboot Almost Human... like, yesterday.

With, what seems like, every network opening their own streaming service, I think more and more people will move towards "different service each month" subscription model, with some exceptions, like Amazon and maybe Disney if you still have kids around the house.

 

[Zarathustra]

ST3 will help, but only for a month when everyone will binge watch it and then be done with it again. Same with Ozarks, or anything else for that matter. That said, I totally agree with you on the QC aspect of things. They have way too much crap, but then so does Amazon (I think I can count on fingers of one hand the number of different AZ Original series I have watched)... the difference being, Amazon offers a lot more for basically the same fee, which makes it a much better deal. Speaking of keeping crap... Netflix needs to reboot Almost Human... like, yesterday.

With, what seems like, every network opening their own streaming service, I think more and more people will move towards "different service each month" subscription model, with some exceptions, like Amazon and maybe Disney if you still have kids around the house.

I wouldn't be surprised if streaming services start exclusively selling annual packages or raise the monthly cost significantly and offer annual discounts, or something like that in order to discourage those who sign up for one show, binge watch the season and then cancel.

Their model only works if people stay subscribed year round and use it as a regular source of occasional watching.