Netflix lost 430,000 subscribers in the U.S. and Canada in the second quarter and released disappointing forecasts for later in the year, raising investors ’doubts about how the streaming group will fare after the economic reopening.
The California-based company predicted it would gain 3.5 million subscribers in the third quarter, disappointing investors looking for a stronger rebound in the second half of this year. Analysts have expected Netflix to gain 5.9m subscribers during the third quarter.
Shares fell 1.4 percent in trading after the hour.
The California company added 1.5m subscribers in the second quarter, just above Wall Street forecasts for 1.1m.
After adding a record number of customers last year, subscriber growth slowed sharply as new competitors entered the market and people came out of pandemic closures.
Nine registrations have been planted in the United States, Netflix’s largest market, where most coronavirus restrictions have been restored.
“The pandemic has created an unusual smallness in our growth,” the company’s management told shareholders.
Reed Hastings, co-executive director of Netflix, has denied concerns about the competitive threat. In the last year and a half, Disney, Apple, WarnerMedia, Comcast and others have launched streaming platforms, and there are now more than 100 streaming services to choose from, according to data company Ampere.
Instead, Netflix executives have accused a lighter offer of shows and movies and have promised that growth will resume in the second half of 2021 with the return of titles like The Wizard and Sex Education.
“Covid and its variants make the prediction of the future tough, but with productions largely going well so far, we are optimistic about our ability to deliver a strong second half. [shows], ”The company said Tuesday.
Yet, Netflix remains by far the largest paid video streaming service, with 209m subscribers, compared to 104m for Disney Plus, its closest competitor.
Revenues in the second quarter increased 19 percent from the same period last year to $ 7.3 billion, meeting analysts ’forecasts. Net income increased to $ 1.4 billion, up from $ 720m a year.