Foxtel Breathes SighOf Relief As Netflix Wobbles
Foxtel executives are this morning witnessing light at the end of a tunnel with news that consumer engagement with arch rival Netflix is slowing.
Netflix shares tumbled more than 14 percent after the streaming giant missed its second-quarter growth forecast by more than a million subscribers.
ChannelNews understands that sign ons in Australia have slowed “significantly”.
Last night it was revealed in New York, that Netflix added 5.2 million users in the second quarter, about a million fewer than the company predicted.
Bloomberg said that investors and analysts now have the job of weighing whether the slowdown is a blip or a longer-term problem.
Netflix’s stock has surged to record highs in recent months because investors believe the company will add tens of millions of customers around the world for years to come. This is now proving to not be the case due in part to a lack of new and fresh content claim analysts.
Calling the quarter “strong but not stellar,” Netflix boss Reed Hastings cited hurdles such as increased competition from YouTube, HBO, Disney, Amazon and Apple, as well as foreign currency fluctuations as the streaming giants accelerates its international business.
The CEO touted the success of its sci-fi action series, “Lost in Space,” as well as the second season of its popular original series, “13 Reasons Why.”
One reason for the shortfall may have been a lack of content. Netflix released a thin slate of shows in the quarter, relative to its typical output. It didn’t add new seasons of its biggest hits, such as “Stranger Things,” nor did a new show become a phenomenon. Ever since Netflix released “House of Cards,” the company has credited new seasons of original series with luring new customers.
Netflix did release a new season of “13 Reasons Why” and the Marvel series “Luke Cage,” as well as a breakout stand-up comedy special in Hannah Gadsby’s “Nanette.”
World Cup Woes?
Bloomberg claims that potential new customers may have also been distracted by the World Cup, a quadrennial soccer tournament that is among the most-watched TV events in the world. Netflix, based in Los Gatos, California, didn’t specify why it fell short last quarter, beyond citing the difficulty of forecasting growth in 190 countries around the world.