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Netflix shares fall 14% after it misses subscriber, revenue expectations

By midian182 · 22 replies
Jul 17, 2018
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  1. Netflix is reported to have added 647,000 domestic subscribers and 4.47 international new signups during the last quarter, missing estimates of 1.23 million and 5.11 million. This marks the first time in five quarters that the streaming giant has failed to hit subscriber projections.

    Netflix also fell short when it came to revenue predictions. It brought in $3.91 billion in Q2 but was expected to earn $3.94 billion. And for the first time, International customers accounted for more sales than domestic subscribers. Profit was one area that beat predictions, reaching 85 cents per share, above analysts' expectations of 79 cents.

    The slowdown, which saw Netflix shares fall more than 14 percent, has been blamed on the lack of new top-tier shows in the second quarter. Bloomberg notes that there were no additional seasons of its biggest hits, such as Stranger Things, nor were there any brand-new shows that found massive success. The company relies on new seasons of its original content to draw in subscribers, and the distraction of the World Cup has also been put forward as a reason behind the disappointing results .

    Additionally, Netflix issued weaker-than-expected guidance for the third quarter. With increased competition from rivals such as Hulu and Amazon, a potential price hike, and the eventual loss of some content to Disney’s upcoming service, it seems the company needs to work harder if it wants to stay on top.

    Permalink to story.

  2. Bubbajim

    Bubbajim TechSpot Staff Posts: 696   +676

    Is $30 million really that big of an issue when you're basically at the $4 billion mark?
  3. p51d007

    p51d007 TS Evangelist Posts: 2,069   +1,322

    Less content people want to pay to see, more "original" content people don't want to pay to see.
    Netflix doesn't want to pay Hollyweird the royalties on movies & tv shows so they try to make them
    themselves, but most people don't want to see them.
    JaredTheDragon, killmess and senketsu like this.
  4. kombu

    kombu TS Addict Posts: 96   +189

    Don't worry, that upcoming Obama series will fix everything. I mean that Michelle Wolf show was a total success. (It was so popular they posted full episodes on youtube.) What people don't understand is that there just isn't enough Left leaning shows on air nowadays.
    Misagt and ctm17 like this.
  5. ctm17

    ctm17 TS Member Posts: 16   +11

    We cancelled as a result... with news and social media, we didn't need another source of left leaning media being pushed (any politics for that matter) , we just want to be entertained (hence why we was with Netflix for so many years). Its been a curve this past month getting used to Hulu, however after nearly a month with Hulu, have no regrets...
    EClyde, kombu and Misagt like this.
  6. I'm still with Netflix, but the problem is not (for me anyway) "a dearth of new content", but rather too much 'Netflix original' poor content. Still things worth watching, but now I have to dig more.
    kombu likes this.
  7. TomSEA

    TomSEA TechSpot Chancellor Posts: 3,144   +1,651

    This is why playing the stock market is no different than going to a casino.

    Netflix STILL made 3.91 BILLION dollars, but didn't make 3.94 billion dollars so investors are scared and the stock value dropped by nearly 15%. The actual "loss" of expectations is only .07%. That's frankly *****ic.
    Last edited: Jul 17, 2018
  8. H3llion

    H3llion TechSpot Paladin Posts: 1,707   +449

    I would get Netflix, but here are the issues which are causing "poor" sales.

    - Lack of Library, it's big, but not big enough.
    - Region locking. Here in UK, I wanted to watch Atlanta (Donald Glover show), I couldn't, so I instantly cancelled my subscription and will not be returning.
    killmess likes this.
  9. roberthi

    roberthi TS Addict Posts: 423   +130

    Gee….wonder why. They push tall panels of their original content so that you can’t get to what you want to see and insist on autoplaying everything you float over so that you’re too distracted and frustrated to want to browse the list. That, plus I watched one (1!!!) movie with subtitles and now have tons of subtitled movies being pushed to me because I watched one (1!!!). I’ve tried low-rating all that I see and still keep getting tons of them.

    I admittedly prefer Netflix over all the sources I have (Hulu, Prime, Sling), but I don't need 1000 foreign movies on my list, I don't need to see super tall push it in your face panels or autoplay BS I REALLY REALLY want to turn off so that I can just read the description. Heck...if they would just fire the UI designers and get someone in who's not doing their internship and put it back to the old menu from years ago, I would be much happier.
    Last edited: Jul 17, 2018
  10. Dimitrios

    Dimitrios TS Guru Posts: 531   +393

    Good! This is a company that every time they add a new show or movie they get cocky and want to raise the prices. I can't stand how they try and trick the customer by adding the same movie to every genre that relates to it to make it look like the selection is larger then what it appears. Never hated a company like them. Charging me $18.65 on a separate Credit Card which I never knew and also charging (correctly on my People's Bank card) which is the normal minimum payment like $7 or $10 a month. I have the newer AMAZON STICK and since I'm a PRIME MEMBER I got it for $20 and installed KODI and get all the FREE movies, TV shows, and live tv around the world. HULU and NETFLIX needs to put customers first or just die like companies that didn't want to change like BLOCKBUSTER and AOL.

    What's crazy is how powerful the STICK is and with any BLUETOOTH game controller it's a pretty decent little gaming console.
    killmess likes this.
  11. netman

    netman TS Evangelist Posts: 384   +134

    Netflix used to be good five years ago, but now it sucks! Convoluted, unorganized, lack of nice Hollywood movies and too much of original content crap...
  12. netman

    netman TS Evangelist Posts: 384   +134

    Totally agree on the Netflix UI...It sucks big time with that annoying auto play on the titles. In fact this was the reason I dumped Netflix. They should definitely get rid of their UI design team and come up with some creative replacement...
    killmess likes this.
  13. Dimitrios

    Dimitrios TS Guru Posts: 531   +393

    Yeah more and more INDIE movies made from kids on their Iphones. Might be a 1 good one out of 100 but they need to add better content. Also not gonna wait 1-3 years till a new movie goes to NETFLIX. Also Amazon Prime is getting greedy raising movie rental prices and you CAN'T rent new movies on Amazon you have to buy it for $19.99 or wait months till you can rent it for like $5.99-6.99 lol. Free $hit it is for me on KODI!!!! Amazon owner is the richest guy on earth WALLSTREET claims, **** that greedy A$$******!
    Last edited: Jul 17, 2018
  14. Dimitrios

    Dimitrios TS Guru Posts: 531   +393

    Same here, AUTOPLAY on my Amazon Stick and woke up everyone on my street. Very annoying and last I checked you can't turn Autoplay off. The most dumbest move ever. Who ever added that needs to be fired.
  15. treetops

    treetops TS Evangelist Posts: 2,647   +616

    It's funny to see people complain about Netflix, remember Blockbuster? Netflix is a god send.
  16. Dimitrios

    Dimitrios TS Guru Posts: 531   +393

    A god send is KODI and maybe Amazon Prime Video. Pissed? Must be a stock owner of NETFLIX.
  17. treetops

    treetops TS Evangelist Posts: 2,647   +616

    Netflix paved the way....
  18. Danny101

    Danny101 TS Guru Posts: 848   +329

    Lack of blockbuster movies and shows. To be regioned lock, I don't want to watch foreign movies where I have to read subtitles and can barely watch the action because if it. Besides, I had to cut my budget anyway, and there aren't many original plot lines anymore. It's all been done. Even sci-fi is full of rehashed plots with different costumes. Ditto on the autoplay. Freaking annoying.
  19. SirCanealot

    SirCanealot TS Rookie

    It is a MASSIVE issue. If a company is only making some of the money rather than ALL of the money, it is completely failing and may as well close down. See the videogame industry for lots of example of this :)

    Oh, you poor souls! Hope you guys are okay there in your ideological echo chamber! Hope nothing ever comes a'knockin' again, ever! :O :O
  20. Bubbajim

    Bubbajim TechSpot Staff Posts: 696   +676

    I must confess my ignorance in not knowing any gaming companies who had their best ever quarter at $400 million over their next best, whose revenue topped $11 billion in the previous year, and still had to close down.
    wiyosaya likes this.
  21. wiyosaya

    wiyosaya TS Evangelist Posts: 4,221   +2,488

    In fact, there was a recent news article that said that production of Netflix original content will exceed all Hollywood studios this year - combined! IMO, not the signs of a failing company.
    I've never seen extra charges on my account. Just drop them if you hate them so much.
    There is no auto play in their Windows app. While they do put their stuff in the forefront, it is easy to ignore.

    Whether or not anyone likes Netflix is certainly an individual matter.
  22. ctm17

    ctm17 TS Member Posts: 16   +11

    You make no sense... Consumer choice, something hopefully we never loose. I actually feel bad for you if you really believe people should be forced or to have no choice but to buy a service vs. having choices or options. You're welcome to all the left leaning political media you liking, as for me and my family, when the TV is turned on, we want to be entertained.
  23. Dimitrios

    Dimitrios TS Guru Posts: 531   +393

    That's what I did, I dumped them. Amy Schumer, prices going up, Obama signing an agreement with NETFLIX for documentaries and pushing his agenda, autoplay, charging me on a different credit card for a plan that doesn't even exist $18.65 etc I can go on forever.
    ctm17 likes this.

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