Netflix has been revered as one of the go-to services if you want to stream TV shows and movies from the Internet. It has been garnered as one of the best Internet television networks for quite a while now. Since its services have been launched back in 2007, it has already garnered more than 81-million subscribers across 190 countries around the globe. Also, it has already accumulated 125-million hours of TV shows and movies that have been watched on a daily basis, which even include original series, feature films, and documentaries. With all this success, it can be a wonder why there are those who are opting to do away with their subscription.
Netflix Trying New Ways to Reach Out to More Tech-Savvy Audiences
According to the latest financial results brought about by Netflix, it suggested that TV audiences are now losing interest in the service are opting to switch off. In a later directed towards its investors, the company reported the addition of 160,000 new subscribers from the United States from April through June of this year.
While this does sound pretty positive, this is actually the lowest quarterly gain in customers within the United States that Netflix has reported since it has split its video-streaming and DVD-by-mail services approximately five years ago. The company has already missed analysts expectations of $2.1-billion as it falls short at $1.96-billion.
Speculations are now rising as there are those who question if the streaming service is not upgrading itself enough for consumers to enjoy more choice content to retain interest. Or, it could be that more people have already become more privy about sharing their accounts on a mass scale. This slow growth is also said to be the cause of the service’s recently increasing prices.
The company’s letter continued further as it states the following: “We are growing, but not as fast as we would like or have been. Disrupting a big market can be bumpy, but the opportunity ahead is as big as ever and we continue to improve every aspect of our business.”
However, Netflix was adamant that the drop in subscriptions, as well as the lower-than-expected earnings, was not anything to do with competing services such as those of YouTube Red, Hulu, or Amazon Prime Video. “As internet TV rises in popularity, so do the Subscription Video on Demand (SVOD) offerings. In the US, for example, CBS All Access, Seeso, Amazon Prime Video, Hulu, YouTube Red, and many others are all growing. Our view, however, is that we are all growing primarily against linear TV hours and that competition did not contribute materially to our miss in Q2,” the letter continued.
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