Netflix customers reported increased 24% lower than expected between April and June – Economic Week

Media

-> 19 July 2016

Netflix customers reported increased 24% lower than expected between April and June

the company attributed the result to higher prices for older customers.

Netflix , a US company distributor content online , reported second quarter growth of 1.52 million customers worldwide and 160,000 subscribers in the US, figures that deviate from those estimated the sector for the second quarter of the company . an increase of 2 million customers worldwide and 500,000 customers in the North American country

“We are growing, but not as fast as we would like,” revealed executives Netflix in a statement addressed to its shareholders.

unmet expectations are also reflected in sales growth. So while it was estimated that at the end of the second quarter they amount to US $ 2.100 billion, Netflix had sales of US $ 1.900 million. This constitutes an increase of 33% over the previous quarter.

The American company attributed the failure to achieve their expectations to price increase that was recently applied to older clients. This came into effect during the second quarter and generated, according to the company, which many subscribers cancel their service. To counter this, by the third quarter Netflix expects to base its growth on new international customers and thus less dependent on the US market.

In reaction to the results presented, the action of Netflix fell 13% in the ‘ after hours ‘ of the New York stock exchange. This even though earnings per share rose from US $ 0.6 to US $ 0.9 compared to the first quarter of 2016.