Magazine article Screen International

Netflix Growth Stalls after Price Hike

Magazine article Screen International

Netflix Growth Stalls after Price Hike

Article excerpt

Netflix has blamed its decision to hike subscription fees for lower than forecast growth recorded over the past quarter.

The VoD operator added more than 3 million members for the three months to Sept 30 taking its global base to 53.1 million.

Its non-US business accounted for 2 million of these additions, taking its subscriber base across countries including the UK, Netherlands and Germany to 15.8 million.

However the results were down on the 3.7 million new members previously forecast by the business.

Netflix claimed that the slower-than-expected growth was due to the price increased rolled out earlier this year. In April, it revealed that new subscribers would pay up to $2 more for access to series such as Breaking Bad and Orange is the New Black.

"As best we can tell, the primary cause is the slightly higher prices we now have compared to a year ago. Slightly higher prices result in slightly less growth, other things being equal, and this is manifested more clearly in higher adoption markets such as the US," it said in a statement.

"We remain happy with the price changes and growth in revenue and will continue to improve our service, with better content, better streaming and better choosing. …

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