Netflix’s share prices slumped 14 per cent after user growth numbers disappointed.
eMarketer principal analyst Paul Verna said: “After four consecutive quarters of beating its own guidance, and analysts’ expectations on key metrics such as revenues, profits, and subscriber gains, Netflix disappointed with a weak Q2 2018. This is isn’t entirely surprising given rising competition in the video streaming market, where Amazon, Hulu, HBO and others are gaining share of subscription video dollars at Netflix’s expense. The market is also heating up with new entrants in the SVOD space, including Disney and AT&T.”
”Despite the weak quarter, and a lowered outlook for Q3, eMarketer expects Netflix to remain the clear leader among video streaming services in the US. Netflix has a strong slate of original content that should keep it in the forefront among streaming services, and it plans to continue outspending the competition to develop TV programming and feature films. This is critical in an era when people increasingly choose streaming services on the strength of their content.”