Netflix Inc. is adding fewer customers in its home market, as the streaming giant gears up to face new competition from Hollywood and increased scrutiny from investors over whether it can maintain its rapid growth, reports The Wall Street Journal.
The video service said it gained 9.6 million customers in the first quarter, but only 1.7 million in its domestic market, fewer than it added in the U.S. a year ago. And the company, which recently raised prices, forecast slower gains in the second quarter in the U.S. and abroad. Despite the second-quarter forecast, Netflix said it still expects record subscriber growth for the full year.
The weakness in the U.S. reinforced the importance of international markets for the nearly 22-year-old company.
Netflix ended March with 148.9 million paying subscribers around the globe, surpassing its forecast of 148.2 million for the period. By that tally, it tops other subscription video services such as HBO and Hulu.
The Los Gatos, Calif.-based company helped to pioneer the streaming-video industry, growing rapidly as Americans canceled cable subscriptions and as it developed content meant to appeal to consumers around the world. One of its films, “Roma,” a Spanish-language drama, recently won an Academy Award for best director.
Netflix is going to face increased competition in the coming months, particularly from Walt Disney Co. , Apple Inc., and AT&T Inc., which owns HBO.
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