Nextflix Subscriber Gains in Q2 are Less Than Half of Projected

Posted Wed Oct 10, 2012 at 11:00 AM PDT by Dick Ward

Disc subscriber count is down by 850,000 to boot.

Netflix set a lofty goal at the beginning of this year, hoping to grow its subscriber numbers by seven million people. In response to the last quarter's numbers though, they're looking at significantly less. At this point, the company is hoping for a growth of around 5.5 million users. It's still a growth, but it's 1.5 million less than planned.

During this same period, Netflix lost a huge chunk of disc based subscribers. Over the last year, they've dropped by 850,000. Considering the current struggle with streaming content subscribers, this is a very significant number for the company.

Analysts point to the increasing competition in the market as one of the big reasons for Netflix losses. Amazon in particular has been gaining ground, and Redbox Instant could make a huge impact when it hits too.

Source: Home Media Magazine

See what people are saying about this story in our forums area, or check out other recent discussions.

Tags: Industry Trends, Netflix (all tags)