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.