Netflix Stumbles on Path to World TV Network With Price Hike
- Results show subscribers more sensitive to costs than thought
- Rio Olympics could draw audiences away during current quarter
Netflix: Failure of Expansion Plans or Company Guidance?
This article is for subscribers only.
Netflix Inc.’s quest to create the first global, online TV network hit a speed bump Monday when the company said a price increase cut subscriber growth to a three-year low, causing its stock to plummet and exacerbating concerns about its future growth.
The streaming service added 1.68 million subscribers in the second quarter of 2016, missing its forecasts both at home and abroad, according to a statement on its website. Netflix added 1.52 million new customers overseas, compared with an April projection of 2 million. It added 160,000 in the U.S., bringing the company total to 83.2 million.