Netflix reported a loss in its U.S. subscriber count for the quarter ending June. This in its first quarterly decline in domestic subscribers since 2011. The company also missed estimates of worldwide subscriber growth.
The online video streaming giant reported a loss of -126,000 domestic paid subscribers, compared with analysts’ expectations for a 352,000 gain.
Global subscribers of Netflix platform grew by 2.83 million – falling short of analysts' growth expectation of 4.8 million.
Netflix has blamed price hikes behind the lower-than-expected subscriber figures for the quarter. It said that it missed forecasts in mostly those regions that saw price increases in subscription plans
However, the company’s earnings for the quarter came in at 60 cents per share - which is 4 cents ahead of the Street consensus expectations. Total revenues rose +26% to $4.923 billion, largely in-line with analysts' forecasts.
Looking ahead, Netflix said that it expects revenues of $5.25 billion for the third quarter, with global streaming paid additions of 7 million. It expressed optimism for its hit series “Stranger Things” and its latest season, and also expects strong viewership for the new seasons of “The Crown” and “Orange is the New Black”.