Despite recording an increase in subscribers to almost six millionthe financial results of Netflix in the second semester they were far from satisfying the market which, at the close of this edition, punished the company’s shares with a 8% crash on the stock market and that could lead to an increase in prices.
Despite having corrected the user crash that triggered all the alarms on the platform streaming With subscriptions with ads and the end of shared accounts, the markets continue to raise the bar for the platforms and in this case they penalized the creator of the series as Elite for not meeting revenue forecasts.
Reading in the gossip Wall Street it is that the new users who are coming to the platform are subscribing with cheaper plans, with which the strategy is not generating the expected growth in billing level, at a time when the growth at all costs that the market used to applaud has been replaced by the search for profit and efficiency in spending.
Netflix’s reaction did not even wait for the opening of the stock market. In the same presentation, he announced that would eliminate its two cheapest plans in the United States and the United Kingdom-of 6.99 pounds and 4.99 dollars-, something that he already did in Canada.
The co-CEO of the company, Gregory K. Petershinted that this measure would be replicated in other countries with the aim that customers who pay lower rates end up in the plan with ads and the rest in higher value packages.