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Netflix Faces First Major Loss In Terms Of Subscribers Due To Cost Hikes

Netflix Faces First Major Loss In Terms Of Subscribers Due To Cost Hikes

Netflix did not add almost as many users as the firm aimed it might in the Q2 of 2019, and witnessed a loss in US users since 2011 for the first time. This comes when the firm divided its streaming platform and DVD mail-order system.

Netflix Faces First Major Loss In Terms Of Subscribers Due To Cost Hikes

The firm lost almost 130,000 users in Q2 in the US, and only attained 2.7 Million worldwide users, after planning it might include 5 Million. CEO Reed Hastings held the stagnancy on the firm’s costs hikes responsible as well as a shortfall of original content to convey in new users. The firm instituted higher costing plans in January, one of its largest elevations till date. Plan modifications went into effect for both returning and new users. As such, paid memberships in the US were “basically flat.”

“Our missed prediction was all over the world, but a bit more so in areas with cost increases,” Hastings claimed to the media. “We do not believe rivalry was a factor since there was not a material modification in the competitive landscape during this period, and our penetration along with competitive intensity is different all over the world.” The news has resulted in an instant stock drop for the firm.

On a related note, the Television Academy has disclosed 2019 Emmy nominations and to completely no one’s shock, Game of Thrones emerged up with 32 nominations, comprising Outstanding Drama Series and 10 nominees all over different acting segments. The series with the second-highest tally of votes is The Marvelous Mrs. Maisel by Amazon Prime Video with 20 nominations. It got various several awards in 2018, comprising the top Outstanding Comedy Series award. It is again nominated in the same segment.

Netflix and HBO again had the most nominations on the whole, with 117 and 137 respectively, followed remotely by Amazon with 47 and NBC with 58.

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