The flight of subscribers from Netflix continues in the second quarter but slower than expected. The streaming TV giant loses 970,000 subscribers, definitely below the expected two million, and flies to Wall Street where it earns over 6% in after hours trading. To contain the losses was the new season of ‘Stranger Things’.
Speaking “confident and optimistic for the future”, Netflix is committed to “accelerating revenue and subscriber growth”: “it’s our challenge and our opportunity,” she said presenting the results of the second quarter which ended with a profit. net of 1.4 billion dollars on revenues up 8.6% to 8 billion. The strong dollar weighed on revenues for 339 million, which will continue to have its effects felt also in the third quarter, limiting growth to 4.7%. Netflix makes 60% of its revenues outside the United States and this exposes it to fluctuations in exchange rates. The company expects to earn 1 million subscribers this quarter, less than the 1.8 million analysts were betting on. In the letter to shareholders accompanying the quarterly results, Netflix announces that it will likely launch its new, cheaper, ad-supported subscription in a couple of markets.
“Like all our initiatives, we want to learn and improve the offer quickly. Our advertising activity in a few years will be very different from that of the first day”, highlights Netflix that last week chose Microsoft for the supply of the technology that will facilitate the placement of advertising.
Source: Ansa
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