According to Netflix’s Q2 2016 earnings report, released yesterday, the company is beginning to suffer growing pains, with subscriber number growth slowing following the platform’s recent price hike and subsequent global expansion.
Netflix only added 160,000 new subscribers in its second quarter, a number far below its goal of 900,000 new users. In a letter to investors, Netflix CEO Reed Hastings said growth stalled due to its recent subscription price hike. In Canada, Netflix increased the price of its basic plans by $2, bumping them from $7.99 a month to $9.99 a month.
Following the release of its quarterly earnings, shares of Netflix dropped by 15 percent, despite the streaming giant still pulling in $2.1 billion in revenue during the three-month period. This number is also an increase over the $1.64 billion Netflix amassed during the same time period last year.
Netflix continues to invest heavily in original content, with its most recent release being the received 80s thriller Strange Times.