Today Netflix announced their 2nd quarter 2019 earnings, and it showed a noticeable drop in new subscribers. According to Netflix, they added 2.7 million new subscribers in the 2nd quarter of 2019. This is far lower than the 5 million that was projected and lower than the 5.5 million they added in the 2nd quarter of 2018.
Netflix’s net income was $271 million down from $384 million a year ago. overall revenue rose 26% to $4.923 billion.
This may all sound bad, but there was some good news for Netflix. Global subscriber numbers rose to 151.6 million from 124.35 million a year ago and 148.86 million in the first quarter of 2019. United States subscribers was flat, but Netflix hopes to see United States subscriber growth in the 3rd quarter of 2019.
“We don’t believe competition was a factor since there wasn’t a material change in the competitive landscape during Q2, and competitive intensity and our penetration is varied across regions (while our over-forecast was in every region). Rather, we think Q2’s content slate drove less growth in paid net adds than we anticipated,” Netflix said.
Netflix is forecasting that 3rd quarter net income would be $470 million on revenues of $5.26 billion.
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