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Netflix warns price rises to hit subscriber growth | Netflix warns price rises to hit subscriber growth |
(about 5 hours later) | |
Netflix expects subscriber growth to slow in the second quarter as the film and TV streaming firm continues to roll out price rises. | Netflix expects subscriber growth to slow in the second quarter as the film and TV streaming firm continues to roll out price rises. |
The company reported strong sales and profits for the first quarter, including 9.6 million new subscribers | The company reported strong sales and profits for the first quarter, including 9.6 million new subscribers |
However, Netflix expects that number to slow between April and June. | However, Netflix expects that number to slow between April and June. |
The company is lifting its prices across the US, Brazil, Mexico and some parts of Europe to help fund the production of its own content. | The company is lifting its prices across the US, Brazil, Mexico and some parts of Europe to help fund the production of its own content. |
Eric Haggstrom, forecasting analyst at eMarketer, said the revenues generated by the price increases will help Netflix differentiate itself in an increasingly crowded industry. | Eric Haggstrom, forecasting analyst at eMarketer, said the revenues generated by the price increases will help Netflix differentiate itself in an increasingly crowded industry. |
The company has produced a number of critically acclaimed films and series including The Crown and the Oscar-nominated Roma. | The company has produced a number of critically acclaimed films and series including The Crown and the Oscar-nominated Roma. |
Most recently, Disney and Apple separately announced they would be launching their own rival streaming services. | |
Netflix said it was "excited to compete" with its new rivals, adding: "We don't anticipate that these new entrants will materially affect our growth." | |
But in the meantime, it expects to see some "modest short-term churn" in subscribers which will fall 8% to five million compared with 5.4 million in the second quarter last year. | |
Netflix said for the first three months of the year, profits had risen to $344m compared with the same period last year, with sales up 22% to $4.5bn. | |
While total revenue is expected to increase to $4.9bn in the second quarter, income growth was forecast to slow to $249m. | |
Netflix said it was looking forward to a "strong slate of global content" in the second half of the year including the third series of The Crown, this time starring Oscar-winner Olivia Colman as Queen Elizabeth II and Stranger Things. |