Netflix subscriber drop hints of streaming-service fatigue
(Netflix)
NEW YORK (AP) - A drop in U.S. subscribers to Netflix following a price increase raises the question of how much people are willing to pay for streaming services. Especially as a host of new ones, from Disney, NBCUniversal, and others heads their way.
Netflix said Wednesday that it lost 126,000 U.S. subscribers in the second quarter, when it boosted the price of its most popular subscription plan from $11 to $13. But analysts say a weak quarter from the sector's dominant player isn't a sign that demand for rapidly growing streaming video segment as a whole is waning.
The spring quarter is typically sluggish for the streaming service, and Netflix acknowledged a weak content slate could have been part of the drop.