Analyst: Netflix Added Just 1 Million (Foreign) Subs in Q2

Netflix is expected to report adding 1 million international subscribers and net zero additions in North America for the fiscal period ended June 30 — on par with company estimates but down from Wall Street projections of 1.97 million subs, according to Wedbush Securities media analyst Michael Pachter. Netflix added 10 million subs in the previous-year period, driven largely by the pandemic and government-mandated stay-at-home measures.

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Netflix expects to have ended the period with 208.6 million subs worldwide. That compares with 192.9 million subs at the same time a year ago.

Michael Pachter

“We expect domestic (U.S. and Canada) paid streaming subscriber net additions to be flat,” Pachter wrote in a July 15 note.

The SVOD behemoth is contending with an increasingly saturated market inundated by media giants Disney+, Amazon Prime Video, HBO Max, Peacock and Paramount+, in addition to regional competition worldwide.

The market state of affairs underscores why Netflix appears to be ramping up efforts to offer video games to subscribers as early as next year.

Regardless, Pachter says Netflix’s pact with Steven Spielberg’s Amblin Partners studio, and a separate five-year deal with Sony Pictures in which Sony movies will stream on Netflix in the U.S. after their theatrical and home entertainment runs, represent strong cards in hand for the SVOD pioneer.

“This appears to be a major coup for Netflix when it is both facing immense competition and a drying spigot of licensed content,” Pachter wrote.

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