Netflix warned investors that its subscriber growth was going to slow in the second half of this year, and it has. The video streaming service added 2.2 million net new paid subscribers in the third quarter, taking it to just under 195.2 million overall.
Netflix also said that it expects to pass 200 million subscribers (201.2 million to be specific) by the end of 2020.
The slowdown in growth was clear though: Netflix added 15.8 million subscribers in Q1 and 10.1 million in Q2. The 2.2 million in Q3 was below Netflix’s guidance of 2.5 million, which is one reason why its share price dipped following the announcement of its financial results yesterday.
Netflix’s revenues were up by 22.7% year-on-year to $6.44bn, while it recorded a net profit of $790m for the quarter.
“We continue to view quarter-to-quarter fluctuations in paid net adds as not that meaningful in the context of the long run adoption of internet entertainment, which we believe is still early and should provide us with many years of strong future growth as we continue to improve our service,” was Netflix’s message to the markets on the subscriber figures.