Netflix adds 8.8 million new subscribers but its stock drops

Carla Harmon
January 18, 2019

Two days after announcing that the price of its most popular plan would go up by $2, Netflix revealed that it has grown its subscriber base by 8.84 million, or almost 26 percent.

Netflix's number of subscribers only continues to grow more and more.

"In the USA, we earn about 10 percent of television screen time", Netflix announced in its shareholder letter, "and less than that of mobile screen time".

"People are talking about it, posting about it, tweeting about it, challenging themselves to do different things - which we want them to be very careful when they do", Sarandos said of shows triggering cultural buzz.

In December, Netflix said that more than 45 million accounts watched the apocalyptic film in its first seven days, marking a record-breaking debut.

Netflix claims to command 10 percent of America's TV time in its latest quarterly report on Thursday, which also called out "Fortnite" as its biggest competitive concern. No figures were released for other high-profile content, including the interactive movie Black Mirror: Bandersnatch and the Jennifer Aniston comedy Dumplin'. The losses will start to shrink thereafter, the company said. To give you some sense that's over five hours of content that's produced for that episode for people to choose their own paths, and there's countless ways that they could go and end up with. I can promise you that.

"We are beginning to have our original movie offering mirror the success of our series offering for consumer enjoyment", the company said in a statement to shareholders.

Netflix's growth in the U.S has slowed considerably in recent years as it has saturated the market.

Ted Sarandos, Netflix's chief content officer, talked in an investor interview following the release of results. And how much? Will networks begin charging the streaming services more to air their programming, like they have with cable companies?

The company acknowledged it faces a broad range of competitors. The stakes are especially high given that 80% of customers cancel new subscriptions within the first three months. Subscribers keep services if they feel the brand delivers an experience which resonates with them and adds value.

If there is anyone who thinks that it is ok because a stock footage company has the rights to it, imagine a fictional show or movie needing video of a random building being demolished and deciding that the World Trade Center on 9/11 is flawless.

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