Why Netflix Revenues Keep Going Down?



Netflix  reported its Q2 financial performance. After its second-quarter numbers were out, the popular video streaming service saw its value drop sharply, with its shares off 10.

Netflix-revenues-keep-going-down

Netflix has just published its statistics, recorded over the beginning of the year 2020. The SVoD platform attracted 26 million new subscribers, including 10.1 million in the second quarter. However, the streaming giant has warned investors that its growth could slow down soon.

Netflix's share fell by more than 10% on Thursday at the opening of the Wall Street stock exchange. Despite the boom in the platform's activities, due to the confinement of a large part of the globe, earnings are worse than expected.

Beware of the second half of 2020

Netflix added 10.2 million subscribers in the second quarter of this year. This is well above the company's estimate of 7.5 million new consumers.

But while the company's revenues ($6.15 billion) are up 25% over 2019, Netflix cautioned investors.

"As expected, growth is slowing as consumers recover from the initial shock of covid  and restrictive measures," a spokesman said.

So the streaming giant is forecasting a much more measured third quarter. Only about 2.5 million subscribers are expected to join the platform, compared to 6.8 million at the same time last year.

The coronavirus pandemic has strongly impacted the pace and operation of Netflix. Many productions were abruptly interrupted, and are only now gradually resuming. The planning for the year 2021 is also expected to be disrupted as a result. However, the platform is aiming for the same number of releases, but with a busier second half of the year.

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COMMENTS

BLOGGER:
  1. I will tell you why. Because of the absolutely HORRIBLE idea of forced previews they added to their website, which makes the whole experience A NIGHTMARE. Personally, I cancelled Netflix (FOREVER) because I cannot stand all the new features. It was great, until they ruined it. Honestly, what were they thinking. The forced previews are the worst idea. And the fact that you can't scroll through the website without forced previews popping up. It is rare where something does not need to be improved, however, this was a case where no improvements were necessary. The adjustments were totally unnecessary and idiotic. And I am furious. Change it back now, Netflix. CHANGE IT BACK. You deserve the 10% drop for the horrible decisions and I hope you learn from your mistake. I am done ranting. (I realize it is not that big of a deal, in the end. It's just super annoying).

    ReplyDelete
  2. van der linkor18 July 2020 at 07:01

    The fact that Netflix chooses to constantly prematurely cancel good shows probably doesn't help them either. Seems like most new stuff on Netflix is pretty run off the mill / mediocre stuff. Where'd all the good Netflix content go?!

    ReplyDelete

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