Sunday, July 22, 2007

Netflix Sees Decline in Online DVD Subscribers in Q2

Netflix ended Q2 with approximately 6,742,000 total subscribers to its online DVD rental service, down by about 55,000 from the end of the previous quarter, compared to an increase of 303,000 for the same period of 2006 and an increase of 481,000 for the first quarter of 2007.

Gross subscriber additions for the quarter totaled 1,028,000, representing 4 percent year-over-year decline from 1,070,000 gross subscriber additions in the second quarter of 2006 and 32 percent quarter-over-quarter decline from 1,520,000 gross subscriber additions in the first quarter of 2007.

Of the 6,742,000 total subscribers at quarter end, 98 percent, or 6,609,000, were paid subscribers. The other 2 percent, or 133,000, were free subscribers.

Netflix cited intense competition. Earlier, the company cut prices in two of its monthly subscription plans.


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