Why Netflix isn't pressing the panic button
July 21, 2021. Summarized by summa-bot.
Compression ratio: 16.9%. 1 min read.
A monitor displays a "Little Things" page on the Netflix Inc. website in an arranged photograph at the Pocket Aces Pvt studio in Mumbai, India, on Monday, July 29, 2019. The tiny digital studio is making a name for itself in the world's most prolific movie industry, scoring funding from a marquee Silicon Valley investor right after nailing a deal to stream its most popular show on Netflix. Photographer: Dhiraj Singh/Bloomberg via Getty Images
Netflix lost 433,000 subscribers in the United States and Canada during the second quarter, according to financial results issued after the bell on Tuesday.
London (CNN Business)Netflix lost 433,000 subscribers in the United States and Canada during the second quarter, according to financial results issued after the bell on Tuesday.
In a letter to shareholders, Netflix argued that it doesn't need to get bigger via acquisitions to fend off rivals, and it underscored its massive global growth potential.
Netflix (NFLX) said it doesn't need to play that game.
"The industry has consolidated materially over the years, and we don't believe this consolidation has affected our growth much, if at all," the company said in its letter to shareholders.
Netflix said the second quarter is traditionally a tough time to add subscribers in the United States and Canada, a trend made even more pronounced by the easing of pandemic restrictions in many places.
Netflix added more than 1 million new subscribers in Asia Pacific between April and June, and another 760,000 in Latin America.
Netflix said there is still room to grow.
"This is the time [when] we have to think about: what is the value of the Olympics?" said Niinami.