After raising rates, Netflix reports first-ever drop in U.S. subscribers

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published 18 July 2019

Netflix stock fell more than 10 percent after the market closed Wednesday, following the company's announcement that for the first time since launching its digital service eight years ago, it saw a drop in U.S. subscribers.

In the second quarter, Netflix lost 126,000 paid U.S. subscribers, and also only added 2.7 million subscribers worldwide, far below the five million investors expected. With its hit show Stranger Things now streaming new episodes, Netflix expects to add more than seven million subscribers during the current quarter. Right now, there are more than 60 million U.S. subscribers.

The market is getting more and more crowded, with Disney Plus and HBO Max set to enter the streaming world soon. In 2020, Friends, the second-most watched show on Netflix last year, will only be available to U.S. and Canadian customers on HBO Max. The Office is also leaving Netflix next year, as the show's owner, NBCUniversal, agreed to pay $100 million a year for the next five years in order to have streaming rights.

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Catherine Garcia has worked as a senior writer at The Week since 2014. Her writing and reporting have appeared in Entertainment Weekly, The New York Times, Wirecutter, NBC News and "The Book of Jezebel," among others. She's a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.

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