Page 24 - ARUBA TODAY

A24 TECHNOLOGY
Friday 19 July 2019

Netflix subscriber drop hints at streaming-service fatigue

By MAE ANDERSON lyst Michael Graham said
AP Technology Writer the subscriber numbers will
NEW YORK (AP) — How likely hit the stock in the
much is too much for short term — the stock was
streaming video? down 11% in midday trad-
A dramatic slowdown in ing Thursday — but overall
worldwide growth at Netflix the company's growth re-
— including the first quar- mains on track, particularly
terly drop in its U.S. subscrib- overseas.
ers since 2011 — is raising "We still see a strong con-
questions about just how tent strategy and room to
much are people willing add large numbers of in-
to pay for streaming ser- ternational subscriptions
vices. Especially with a host as key strengths going for-
of new ones from Disney, ward," he wrote in a note to
Apple and others on their investors.
way. Similarly, Pivotal Research
A recent price increase Group analyst Jeffrey Wl-
seems to have spooked odarczak said investors
Netflix subscribers. The shouldn't make a "moun-
company lost 126,000 sub- tain out of a molehill," with
scribers in the U.S., less than the most recent quarterly
1% of its 60.1 million paid figures.
U.S. subscriptions, during The spring quarter is typical-
the April-June period. Its This Jan. 17, 2017, photo, shows Netflix on a tablet, in North Andover, Mass. ly sluggish for the stream-
most popular plan rose Associated Press ing service, and Netflix ac-
from $11 to $13 in a U.S. just as they would with a service will be free and ad Weiser said that for now, knowledged a weak con-
price hike announced in gym membership or a sub- supported for traditional other services shouldn't tent slate could have been
January and rolled out for scription to the New Yorker cable TV subscribers. be overly concerned by partly responsible for the
many subscribers during magazine. Of course, even if these a weak quarter or two at drop. It expects to regain
the second quarter. World- Streaming services prepar- individual services are Netflix. He said streaming some momentum this sum-
wide, the service picked up ing to compete with Netflix cheaper than Netflix, it's content consumption is mer, projecting that it will
2.7 million worldwide sub- appear to be taking note. not clear how many con- still growing rapidly, so the add 7 million subscribers
scribers, far below Netflix's Disney Plus, set to debut in sumers will be willing to pay overall market has plenty from July through Septem-
forecast of 5 million. November, will already be for. of room for competitors. ber. The optimism stems
"Netflix raising prices cheaper than Netflix at $8 One way to make a service And the streaming arena is in part from the immense
prompted people to think a month, though Disney appealing is not through a growth area in the much popularity of "Stranger
about whether they were Plus will also have a smaller better prices but through bigger and more mature Things," whose third season
getting value for money," video library. Hulu has cut exclusive shows and deep entertainment industry. attracted record viewer-
Wedbush analyst Michael prices to $6 from $8 for its libraries, including shows "I don't think it follows that ship after its July 4 release.
Pachter said. main, ad-supported ser- that Netflix will be losing. if Netflix has an underper- Netflix has said it welcomes
While people are willing vice. Services from Apple, Netflix's two most popular forming quarter that tells competition. It ended June
to shell out for several ser- due out this year, and War- shows, "Friends" and "The you about others," he said. with 151.6 million world-
vices to meet their stream- nerMedia and NBCUniver- Office," will be departing in Some analysts also believe wide subscribers, far more
ing needs, he said, they're sal, out in 2020, don't have the coming months for rival Netflix's trouble is tempo- than a current crop of vid-
also willing to cancel if announced prices yet, al- services. rary. eo streaming rivals that in-
they're not using it enough, though the NBCUniversal Group M analyst Brian Canaccord Genuity ana- cludes Amazon and Hulu.q

Microsoft cloud growth beats expectations

says now accounts for al- Earnings, adjusted for non- expected $32.7 billion. The
most a third of its total rev- recurring gains, were $1.37 company’s fastest-growing
enue. CEO Satya Nadella per share. segment was what it calls
even said in a call with The results exceeded Wall the “intelligent cloud,”
investors that “our com- Street expectations. The which includes server prod-
mercial cloud business is average estimate of 14 an- ucts and its Azure cloud
the largest in the world,” alysts surveyed by Zacks In- computing platform. The
although that’s only true if vestment Research was for segment’s revenue was
you use Microsoft’s unique earnings of $1.21 per share. $11.4 billion, up 19% from a
definition. The company The increase in net income year ago.
counts its widely-used of- was 49% but was affected Synergy Research Group
fice software and similar by a one-time tax benefit of analyst John Dinsdale says
online services as part of $2.6 billion from transferring Microsoft is still a long away
its overall cloud business. some properties from for- behind Amazon but well
In this May 6, 2019, file photo Microsoft CEO Satya Nadella That’s in addition to cloud eign subsidiaries to the U.S. ahead of the rest of the
delivers the keynote address at Build, the company’s annual infrastructure such as data and Ireland. The software pack as a provider of cloud
conference for software developers in Seattle. centers and servers, where maker also surpassed fore- infrastructure services. Mi-
Associated Press Amazon is the market lead- casts by posting revenue of crosoft has been gradually
By MATT O’BRIEN $13.2 billion, powered in er. Microsoft said it had net $33.7 billion in the period, gaining share in that mar-
AP Technology Writer large part by a steadily income of $1.71 per share a 12% increase over the ket, rising from 6% in 2016 to
Microsoft on Thursday re- growing cloud computing in the fiscal fourth quar- same time last year. Eleven 16% in the first quarter of this
ported quarterly profit of business that the company ter, which ended June 30. analysts surveyed by Zacks year, he said.q