The world’s biggest internet service provider has lost $6 billion in the US as the company tries to regain some lost ground from Netflix.
The Wall Street Journal reported that the loss of US$6.1 billion in revenue last quarter is the largest loss in Netflix’s history.
Netflix reported revenue of $15.5 billion for the quarter, down from $16.2 billion a year earlier.
The company also reported a loss of $1.9 billion, a sharp drop from the $2.1 million it reported in the fourth quarter of 2015.
In a note, Wall Street analyst Michael Pachter noted the loss in revenue for the fourth-quarter was the first time in its history that the company reported a negative net loss.
“Our analysis of the company’s second-quarter results suggests that Netflix’s profitability in 2017 was driven by a decline in the number of users who chose to pay for service, as well as the number and type of movies and TV shows streamed,” Pachters wrote in a note.
“We believe the decline in service usage is partially offset by a reduction in streaming usage, which we believe will continue to be driven by the launch of new content.
Our estimates also indicate that Netflix has generated $3.5-$4.5 million in net income for the first half of 2018.”
Netflix did not immediately respond to a request for comment.
Netflix, which is owned by Amazon, has been struggling in recent years.
The service lost around $9 billion in profits last year, but it’s been ramping up its content and advertising business in recent quarters.
Netflix’s revenue was down 2% in 2018, and the company has been hit by a series of class-action lawsuits in which consumers allege that the streaming giant discriminates against them by charging them more for access to movies and shows they are legally entitled to stream.
Netflix has repeatedly denied these claims.