Netflix predicts price increase to reach subscriber growth



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Netflix has produced The Crown, whose third series is starring Oscar winner Olivia Colman.Image copyright
Netflix

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Netflix has produced The Crown, whose third series is starring Oscar winner Olivia Colman.

Netflix expects subscriber growth to slow in the second quarter as the film and TV streaming company continues to push prices up.

The company reported strong sales and profits in the first quarter, including 9.6 million new subscribers

However, Netflix expects that number to decline between April and June.

The company is raising its prices in the US, Brazil, Mexico and some parts of Europe to help finance the production of its own content.

Eric Haggstrom, an eMarketer forecast analyst, said revenues from price increases will help Netflix differentiate itself in an increasingly crowded industry.

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The company produced a number of films and series, including The Crown and Rome, nominated for an Oscar.

More recently, Disney and Apple have announced separately that they will be launching their own competing streaming services.

Netflix said it is "excited to compete" with its new rivals, adding, "We do not anticipate these new entrants will materially affect our growth."

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Disney

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Disney is launching its own streaming service

But in the meantime, it expects to see some modest "short-term churn" in subscribers, which will fall from 8 percent to 5 million, compared to 5.4 million in the second quarter of last year.

Netflix reported that in the first three months of the year, profits rose to $ 344 million compared to the same period last year, with sales of 22% to $ 4.5 billion.

While total revenue is expected to increase to $ 4.9 billion in the second quarter, revenue growth is expected to decline to $ 249 million.

Netflix said it looked forward to a "strong global content roster" in the second half of the year, including The Crown's third series, this time with Olivia Coleman as Queen Elizabeth II and Stranger Things.

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