Netflix reports Q2 streaming paid net additions of 2.7M members
Netflix said: "Paid membership grew by 2.7M, less than the 5.5M in Q2 a year ago and our 5.0M forecast...Our missed forecast was across all regions, but slightly more so in regions with price increases. We don't believe competition was a factor since there wasn't a material change in the competitive landscape during Q2, and competitive intensity and our penetration is varied across regions (while our over-forecast was in every region). Rather, we think Q2's content slate drove less growth in paid net adds than we anticipated. Additionally, Q1 was so large for us (9.6m net adds), there may have been more pull-forward effect than we realized. In prior quarters with over-forecasts, we've found that the underlying long-term growth was not affected and staying focused on the fundamentals of our business served us well. Q3 has started with Stranger Things season 3, and the first two weeks of Q3 are strong."