Slower growth than expected for Netflix | RetailDetail

Slower growth than expected for Netflix

Slower growth than expected for Netflix

American internet television supplier Netflix has attracted fewer subscribers in the third quarter than its management had anticipated, most likely due to higher prices.

"Lower growth because of slightly higher prices"

Netflix has told its shareholders in an open letter that it has attracted 3 million new customers in the past quarter, 1 million from the United States. That number is lower than expected, but the company is quick to point out that it had "under-forecasted membership growth" for the "prior three quarters". Currently, Netflix has over 53 million subscribers and the goal is to add another 4 million new subscribers over the next quarter. 

 

"As best we can tell, the primary cause [for the lower quarterly number] is the slightly higher prices we now have compared to a year ago", Netflix said. Nevertheless, shareholders will probably not complain as the higher prices have increased the company's turnover nearly 40 % to 1.2 billion dollars. Net profit reached 59 million dollars, way more than the 32 million dollars from 2013's third quarter.

 

"Belgians surf faster than Dutch people"

Netflix launched in several European countries in September, but it has not revealed its number of subscribers in Belgium and the Netherlands. According to a Dutch poll however, over 1 million Dutch people already use Netflix.

 

The company did also divulge that Belgium and the Netherlands are in the top 5 of countries with the fastest internet, which is important to guarantee stream quality. Belgium is number two, the Netherlands is number three and Switzerland is number one.

Questions or comments? Please feel free to contact the editors


Amazon now delivers packages to car trunks

25/04/2018

From now on, Amazon delivers orders to the trunk of your car. The retail and technology giant has given its Prime subscribers access to get packaged delivered to the trunk of their car, without any additional costs. The service is currently limited to the United States.

Dutch Beate Uhse division not bankrupt after all

05/04/2018

German Beate Uhse’s Dutch subsidiary has not gone bankrupt after all and will continue its activities in both Belgium and the Netherlands. The company revealed the information itself after bankruptcy rumours surfaced.

Amazon often cheaper than Dutch competitors

03/04/2018

Products that are available on both Dutch web shops and Amazon.de, are cheaper at Amazon in about half the cases. Not only do Dutch stores compete with Amazon.de, which ships to the Netherlands, but there are also rumours that Amazon.nl and Amazon.be will soon become more active.

Trump targets Amazon

03/04/2018

President Donald Trump has apparently targeted Amazon as his new enemy. He feels the retail giant is taking advantage of the U.S. Postal Service, something he wishes to remedy with a series of new rules and legislation.

Amazon undisputed ruler of French online world

29/03/2018

Amazon is the undisputed leader of the French online world thanks to a 5.6 billion euro turnover and a 19 % market share. According to Kantar Worldpanel, the overall online market in France was worth 30 billion euro in 2017.

Retail is main driver of artificial intelligence innovations

29/03/2018

Retail companies will invest about 2.76 billion euro in artificial intelligence this year. According to research firm IDC, they are the main driver for AI worldwide, ahead of the banking sector.