The stakes for Netflix are a lot higher now
The streaming giant has watched its stock soar nearly 500 percent since 2014 as sequential quarters of subscriber growth made up for its mounting content spend, estimated at $15 billion in 2019. Then, on July 17, Netflix reported its first loss of U.S. subscribers since its bungled 2011 Qwikster launch, sending the stock down more than 10 percent.
In a note to shareholders and a subsequent Q&A video, CEO Reed Hastings explained that "there was no one thing" that caused a loss of 130,000 U.S. members and lower-than-expected 2.83 million additions abroad. Instead, he chalked it up to a variety of factors, including a price increase that went into effect in May and a dearth of originals that would drive people to pull out their credit cards.
The international market is where Netflix has the most opportunity to grow. During the Q&A, Hastings noted that there are 700 million households abroad that pay for TV . Netflix currently has just 91.5 million subscribers outside of the U.S., giving it plenty of runway to add new members as it bulks up on local language originals and licensed programming.
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