Netflix has lost $17 billion in value according to The Hollywood Reporter. The news follows yesterday’s report that the streaming giant has suffered a significant loss to its US subscriber base for the first time in 8 years.
While it had forecast a gain of 300,000 during the second quarter of 2019, in a letter to shareholders Netflix confirmed that it had in fact lost 130,000 subscribers. Following the news, Netflix’s stock also took a 10 percent hit, says THR.
The reason for this loss is most likely Netflix’s latest price hikes. “Our missed forecast was across all regions but slightly more so in regions with price increases,” it conceded to investors. The streamer also admitted a sub-par selection of content this season could also have contributed to the drop, saying “We think Q2’s content slate drove less growth in paid net adds than we anticipated.”
Despite these gloomy stats, the company still seems confident that things will improve. Saying it expects to see US growth resume this summer, with audience-favorites like Stranger Things, 13 Reasons Why and Money Heist returning.
“While our U.S. paid membership was essentially flat in Q2, we expect it to return to more typical growth in Q3 and are seeing that in these early weeks of Q3,” Netflix said. The streaming service expects to gain 800,000 U.S. subscribers this summer and 7 million more overall.
On this week’s episode of The Dropcast, we are joined by certified organic style god Danny Bowien, founder of Mission Chinese. The celeb chef breaks down the similarities between running a restaurant and running a clothing brand, and even offers some solid business advice any entrepreneur can learn from.