Company - - Apr 18,2019
The popular online streaming company, Netflix, expects its subscriber growth might take a slump in the second quarter due to price rise implemented by film and TV streaming companies.
It was bizarre to know that Netflix added a record 9.6 million fresh subscribers during the first quarter of 2019. Out of these, close to 1.74 million subscribers where from the US, as recorded in the latest earnings report released on Tuesday.
Furthermore, the profit scale observed in the first quarter of 2019 surged to $344 million from a previous mark of $290 million during the first quarter of last year. The revenue share also took a major leap by 22% to acquire $4.52 billion.
However, the global online streaming company is expecting a dip in the count of subscribers between April and June. This prediction is connected to the rise in prices across certain nations including the US, Mexico, Brazil and some parts of Europe; the primary aim is to gather funds for managing in-house productions.
The forecasting analyst at eMarketer, Eric Haggstrom, said the revenues acquired by the price increases would aid Netflix to distinguish itself in a progressively crowded sector.
It is vital to know that, Netflix has produced several critically applauded films and series which includes The Crown as well as the Oscar-nominated Roma.
Quite recently, Disney and Apple unconnectedly announced the launch of their rival streaming services.
In response, Netflix announced it was "excited to compete". Further, the company added, it does not anticipate that the presence of new entrants would “materially affect our growth."