Netflix is losing customers (and money) – / Movies
Netflix is not exactly known for their frugality, but they might consider wasting money in the future. According to a new report, streaming service loses customers ̵[ads1]1; meaning they lose money as well. Netflix owed the drop on both their current slate (ouch) and their last price increase, but they are also obliged to free the ad. So that's good, I guess.
Bloomberg has a piece about Netflix's latest earnings report, and the news is not good. I confess that whenever one of these reports flattens with numbers and percentages, I tend to be glassy-eyed (I was never very good at math). But it boils down to this: Netflix bleeds money and customers, and they may want to work on it. Here's a more technical explanation:
The stock fell as much as 12% to $ 320.30 in New York on Thursday, tumbling against the worst 24-hour case, after the company reported a loss of 130,000 US customers Netflix blamed higher prices and a weak slate of TV shows. 2.8 million subscribers registered internationally during the period, about half what the company predicted.
This is the worst Netflix result report since 2011, which is when they decided to share their physical mail from streaming. But the people at Netflix don't seem so worried – at least not public. "Our position is excellent," said CEO Reed Hastings. "We build amazing capacity for content. Our product has never been in better shape."
Netflix believes their second quarter is going to pick up because of more exciting content, namely The Crown and Martin Scorsese & # 39; s The Irishman . Nevertheless, the streaming giant is not out of the woods. For one thing, they will soon be fighting against several competitors. Disney, Warner Bros and Apple launch all of their own services soon – and Netflix loses titles like The Office and Friends in the process.
With all this money, anyone has theorized that Netflix can start using ads soon. But that doesn't happen. "We, like HBO, advertise for free," Netflix said. "It's still a deep part of our brand setup; when you read speculation that we're moving into advertising sales, be sure this is wrong. We believe we will have a more valuable business in the long run by staying out by competing for ad revenue and instead focusing on competing for viewer satisfaction. "
Cool posts from around the world:
