It’s been a rough few months for Netflix shareholders, and today’s quarterly earnings report didn’t help. The company had to share bad news with its good news when it released its Q2 financials on Monday, as subscriber growth and revenue both fell below analyst expectations, reports Forbes. As a result, the company’s stock dipped by as much as 15 percent in after hours trading.
Netflix had hoped to add 2.5 million new subscribers during Q2, but the final tally this year came in at just 1.7 million. The number fell well short of the 3.3 million subs the streamer snagged during the same period in 2015. On top of that, Netflix’s net income was $41 million instead of the $47 million that had been forecast.
The company indicated that its prices increases have played a role in its less-than-stellar numbers. Members who were grandfathered in at lower rates are due to see new prices take effect, and that has negatively impacted retention. Nonetheless, Netflix remains committed to the price hike for the sake of being able to investing in content.
“While un-grandfathering and associated media coverage may moderate near-term membership growth, we believe that un-grandfathering will provide us with more revenue to invest in our content to satisfy members, thus driving long-term growth,” wrote the company in the Q2 letter to shareholders.
Netflix CEO Reed Hastings put it even more plainly in Monday’s earnings call. “People don’t like price increases,” he said. “We know that. It’s a necessary phase for us to get through.”
Things aren’t all bad for Netflix, though. Not only does the company still lead its main streaming rivals, Amazon and Hulu, it has made and renewed solid content deals. When CBS’ new Star Trek series comes to TV, for example, it will stream on Netflix in nearly 200 countries, excluding the U.S. and Canada. Furthermore, the company was able to boast a new deal with The CW, multiple Emmy nominations (20 more than it pulled in last year), and progress penetrating overseas markets.
Instagram is making its way to yet another screen, and this time, Apple TV is getting a taste of the Reels rabbit hole. The company has launched a dedicated Instagram app for Apple TV, bringing Reels, longer videos, and live shows to the big screen. So, if watching one quick clip on a phone somehow turns into an hour of scrolling, there's now a much larger screen for that.
Instagram brings Reels and more to Apple TV
Audio-Technica, a brand well known for making some of the best studio and professional headphones on the market, has just come out with the ATH-AWX7000, which the company itself claims to be its "finest headphones ever." The new flagship closed-back headphone has debuted at an eye-watering price of $3,799. It combines hand-finished Japanese woodwork with a newly developed 58mm driver.
The earcups are made from Kiso cypress, a prized wood historically used for Shinto shrines and Buddhist temples. Each housing is finished by hand with traditional Echizen lacquer, which brings out the grain and is expected to darken over time. The frame and sliders are finished in a deep navy kachi-iro shade traditionally associated with samurai.
This post is brought to you in paid partnership with Best Buy.
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