Netflix added 520,000 subscribers from the U.S. from July to September, below the 800,000 management expected
Netflix’s subscriber growth is bogging down even before the leading video streaming service confronts high-powered threats from Apple and Walt Disney Co.
The latest sign of the challenges facing Netflix emerged Wednesday with the release of its third-quarter results. The numbers provided further evidence that Netflix’s salad days may be over, particularly in the U.S., where most households that want its 12-year-old streaming service already have it.
Netflix added 6.8 million subscribers worldwide from July through September, below the 7 million customers forecast by the Los Gatos, California, company. Just 520,000 of those subscribers were picked up in the U.S., below the 800,000 that management anticipated. The shortfall came after Netflix lost 123,000 subscribers in the U.S. during the April-June period, marking its first contraction in eight years.
That downturn and the uncertainty about the service’s future growth is the main reason Netflix’s stock had dropped by about 30 per cent below its peak price of $423.21 US reached 16 months ago.
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