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Graphic shows U.S. and global Netflix subscriber additions.
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BUSINESS

Netflix stumbles as competitors prepare to swoop

By Jordi Bou

July 18, 2019 - Netflix has lost U.S. streaming customers for the first time in eight years and missed targets for new subscribers globally, as rivals Disney and Apple prepare to swoop into its market. Netflix shares are down 10%.

The service picked up 2.7 million worldwide subscribers for the April-June period. That's far below Netflix's forecast of 5 million subscribers.

The slowdown rattled investors already wondering how Netflix might fare against a new wave of competition coming this fall when both Walt Disney Co. and Apple plan to launch their own video streaming services.

After the second-quarter numbers came out, Netflix's stock plunged 12% in extending trading. If that sell-off is replicated in Thursday's regular trading session, it will be the largest decline in Netflix's stock price in three years and wipe out $18 billion in shareholder wealth.

Netflix ended June with 151.6 million worldwide subscribers, far more than a current crop of video streaming rivals that includes as Amazon and Hulu.

Signaling it expects to regain some momentum this summer, the company projected it will add 7 million subscribers from July through September. The optimism stems in part from the immense popularity of "Stranger Things," whose third season attracted record viewership after its July 4 release.

Sources
PUBLISHED: 18/07/2019; STORY: Graphic News
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