Bay Area-based Netflix had a not-great second quarter this year, with an overall loss of 126,000 subscribers in the US — the first quarterly decline in US subscribers in eight years, basically since it began streaming content.
Netflix has gotten plenty of attention in recent years for its major outlays of cash for content and its steady stream of sometimes award-winning, sometimes totally terrible original movies and shows. But consumers may be showing signs of fatigue with the platform's offerings, and/or Netflix is finally feeling the heat from competitors like Hulu, and the growing number of paid-subscription apps from cable and broadcast networks aimed at cable-cutters.
As Business Insider reports, Netflix also missed its own projection for global subscriber growth for Q2, gaining 2.7 million subscribers and not the hoped-for 5 million. The company is blaming higher pricing in certain regions of the US for the decline in subscribers — the first such decline since 2011 when the company raised subscription prices to differentiate its DVD and streaming services.
Company reps tell CNBC that they expect subscribers to grow again in the third-quarter thanks to a more robust slate of new content, which includes the already live third season of Stranger Things, and new seasons of The Crown and Orange is the New Black.
CNBC notes that the loss of domestic subscribers may matter less to investors than the big miss on the international side. And Q2 has repeatedly been hard for Netflix in achieving its subscriber targets in previous years, for some reason. As a result of today's report, shares of Netflix were down over 10%, to $325.21 per share.