Netflix adds fewer-than-expected subscribers
- Author: Rita Burton Apr 19, 2017,
Apr 19, 2017, 1:43
The company recorded a total of 4.95 million net streaming customers additions, down from 6.74 million net adds the year earlier and just off its guidance of 5 million.
"It wasn't a strong quarter for Netflix in terms of content", said eMarketer senior analyst Paul Verna. However, Netflix distinctly had a vision before those devices became so universal.
About 51 million of Netflix's subscribers are in the U.S. By the end of this year, Piper Jaffray analyst Michael Olson expects the majority of the company's subscribers to be overseas. Its stock surged $1.90 to $149.15 in Monday's extensive trading, even though user growth through the first four months came in somewhat below management estimates.
The company also revealed Monday it is on the verge of surpassing 100 million subscribers globally, and it could reach that number as soon as this weekend.
"Everybody watches TV and almost everybody has the internet, so I don't see anything that's going to stop Netflix from getting to most people in the United States and then eventually hopefully most people around the world", Hastings said. They had gained 15 percent this year through April 13. Mostly to make its movies eligible for Oscar nominations, Netflix has had to partner with luxury theaters like iPic on limited theatrical releases instead.
The Los Gatos, California company now has a market value of about $63 billion.
Netflix's earnings exceeded expectations, while slower-than-expected subscriber growth was offset by a better-than-expected forecast for subscriber growth in the current quarter. Other cable channels also are contributing internet-only benefits as more viewers, particularly younger people, avoid traditional TV bundles and subscribe to streaming services preferably. Netflix, based in Los Gatos, California, has lined up a slew of high-profile releases in the coming months, including new seasons of "House of Cards", "Orange Is the New Black" and "Master of None".More news: West Virginia law authorizes opioid antidotes at schools
"The model works from a consumer perspective because it is such a good value", Pachter said.
It said that since its subscribers are funding its original films, they should be the first to see them.
Since the Google-owned YouTube has a viewership of a billion hours every day. Netflix will spend more than $1 billion in marketing this year to drive customer acquisitions.
But if it wants to keep investors happy, the company will eventually have to improve its relatively low profit margin.
Worldwide numbers were 3.5 million, compared with a 3.65 million estimate and 3.7 million guidance.
Total revenues jumped to United States dollars 2.637 billion from 1.958 billion the year before and against the company's guidance of 2.5 billion.