It seems the price hikes Netflix imposed in some countries earlier this year have come back to bite, the company’s Q2 earnings report revealed on Wednesday.
In the document, Netflix notes that its paid memberships grew by just 2.7-million, even though the company expected to add at least 5-million.
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“Our missed forecast was across all regions, but slightly more so in regions with price increases,” the company said.
In the US particularly, one of the countries affected by price increases, the streaming service actually lost 130 000 subscribers. It’s the first time the company has lost subscribers since 2011.
Netflix believes their price hikes, as well as some of the content in the second quarter, affected the growth.
Despite missing their targets however, the company expects better third quarter earnings thanks to Stranger Things 3.
“Q3 has started with Stranger Things season 3, and the first two weeks of Q3 are strong,” Netflix said.
In addition to the optimism, the company is also rolling out a new “lower-priced” paid membership option for mobile-only streaming in India.
The new plan will launch in India in Q3 this year.
Feature image: Netflix
