Netflix has announced its figures for the second quarter of 2019. These figures are only partially pleasing. Although Netflix was able to increase its revenue further, the same does not apply to profit. And Netflix has made a big mistake with the growth of paying subscribers for the second quarter. Instead of the 5 million predicted new customers, there were only 2.7 million. But not only that, in the home market USA the number of users even decreased.
In contrast to investors, Netflix sees no great reason for concern. Estimates for the coming quarters are never conservative, but based on current estimates. This can then be much higher or much lower. This is expected to change again in the third quarter, with the aim of gaining 7 million new customers globally.
Comparisons with older estimates have also shown that deviations in individual quarters have hardly any effect on long-term growth. In addition, Netflix does not attribute the weaker growth or decline to the competition, but has noticed it especially in markets where prices have been increased.
By the way, Netflix also clears up rumours in his publication. Netflix is and will remain free of advertising. They believe that Netflix is better positioned with a focus on user satisfaction than fighting with others for advertising revenue.