Netflix Nears 100 Million Subs Mark

  • Netflix Nears 100 Million Subs Mark

Netflix Nears 100 Million Subs Mark

The stock fell 3.47 percent to $142.15, losing momentum after touching a record high in extended trade on Monday following its results, the first March-quarter report from a major US technology company. The shares rose less than 1 percent to $147.71 at 8:00 a.m.in NY before the official market open. Netflix so far has responded to the challenge by employing heavily on original productions like "House of Cards" and "Stranger Things" and marketing its service at a comparatively low price. The first quarter, lighter on new releases, was the company's most profitable ever and the first time global operations made money. 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. Hastings also revealed although more than a billion hours of shows are watched weekly at Netflix, they have "YouTube Envy".

Netflix is guiding for a lower second quarter, with 3.20 million net streaming adds, including 0.60 million in the United States and 2.60 million internationally.

Netflix's biggest success, "13 Reasons Why", debuted the last day of the first quarter.

Worldwide numbers were 3.5 million, compared with a 3.65 million estimate and 3.7 million guidance. Revenue will be $2.75 billion, versus Wall Street projections of $2.76 billion. The earnings report predicts Netflix aims to have a total of 101.95 million memberships by the end of Q2, with the company's executives stating Netflix will break the 100 million total membership barrier by this weekend. Streaming revenue rose nearly 40 percent year-on-year to United States dollars 2.516 billion. The net profit is estimated at Dollars 66 million, with the operating margin at 4.4 percent.

The inclination has presented Netflix with more rivalry in the contest for home entertainment budgets. Its stock rose $1.90 to $149.15 in Monday's extended trading, even though subscriber growth during the first quarter came in slightly below management forecasts.

"We have high satisfaction and are rapidly growing in Latin America, Europe, and North America", the company said in a letter to investors. It is also seeking to improve content offerings to match local tastes in Asia, the Middle East and Africa but expects this to take time.