“For the first time in eight years, Netflix lost subscribers in the U.S. — dropping a net 130,000 for the second quarter of 2019 — and added nearly 2 million fewer international customers than expected, sending the stock tumbling,” Variety reports. “Paid subscribers grew by 2.7 million, including 2.83 million internationally, almost half that of Netflix’s previous guidance of 5.0 million net adds (300,000 in the U.S. and 4.7 million for the international segment). Netflix had 151.6 million paid streaming subs as of the end of June.”
Shares in the company reportedly fell more than 12% in after-hours trading.
The report notes that the second quarter results include the effects of Netflix’s U.S. price increases, with the Standard two-HD stream plan rising from $10.99 to $12.99 per month. Variety notes that Netflix is also rolling out price increases across Europe, including in the U.K., Spain, France, Ireland and Germany.
In announcing the results, Netflix admitted: “Our missed forecast was across all regions, but slightly more so in regions with price increases.” Even so, Netflix downplayed how much the higher prices contributed to the losses.
“The company said the Q2 subscriber results were the result of a weaker content slate in the quarter, which drove fewer paid net adds than anticipated, and said price hikes also hurt subscriber additions,” Variety reports, adding: “Netflix last reported a drop in U.S. subscribers in Q3 2011, after it split apart its DVD-by-mail and streaming services.”