Tuesday, July 19, 2016

Netflix scored only 1.7 million new customers – FAZ – Frankfurter Allgemeine Zeitung

Accumulated than expected in the last three months, less new customers: the video service Netflix

the online video service Netflix ( “House of Cards”) has a lot in the last three months fewer new subscribers can win added than hoped for his leadership. In the second quarter of 1.7 million users were added, the American company announced after market close in the night from Monday to Tuesday. However, it had a subscriber growth of 2.5 million in prospect.

Netflix founder and boss Reed Hastings made for, among other things, a price increase in charge. “Whatever costs something that people do not like, when it is more expensive,” he said in a video conference call with analysts. Netflix must by phase but through. At the end of the higher prices would mean more sales.

In the last quarter should look for expectations of service 500,000 customers in the United States and added 2 million around the world. In its home market Netflix won only 160,000 votes.

International either typical that as a result of a start in a new market only unload a pent-up demand and growth then abbremse, Hastings said. “We are growing, but not as fast as we would would or have made it in the past,” the Netflix leadership wrote in a quarterly letter to shareholders. The stock price fell after trading around 15 percent. Investors were also disappointed by the view.

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Netflix now has 83.2m customers , of which a good 47.1 million in the domestic market America. The service was launched in around 130 other countries earlier this year, making it now available almost all over the world; Exceptions are about China and North Korea. The global reach also arouses appropriate expectations for the growth of the number of users.

Sales at the video service on-year by 28 percent to 2.1 billion dollars (1.9 billion euros) increase. The profit even rose by 55 percent to 40.75 million US dollars.

The influx of new users is crucial to ensure that a large bet of Hastings rises. Netflix infected each year billions of dollars in content, including in series and films from its own production. The money has to come from the subscription fees of the members. Hastings was confident for the future: He do not see why every household should not be Netflix customer in the United States in 10 to 20 years

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