Netflix growth falls short as programming fails to hook viewers

The price hikes affect all new subscribers immediately, as you can see on the Netflix signup page, but current subscribers will begin to see the new prices reflected in their bills over the next three months.

The worldwide subscriber additions show that Netflix "is far from peak int'l net additions".

Management guided first-quarter paid net adds to be 8.9 million, which came in 6 percent ahead of what the Street had already modeled, Schindler said in a research note. Revenue at the company was up 27.4 percent from the year-ago period to $4.2 billion.

Global paid subscriber growth continues to accelerate, and the " pulling of pricing lever should be successful", which "means accelerating revenue growth & operating margin expansion".

The Netflix logo is seen on their office in Hollywood, Los Angeles, California, U.S. July 16, 2018.

It added an unprecedented 781 hours of USA original programming in the United States during the quarter, according to Cowen & Co analysts, including drama series "Narcos: Mexico" and holiday films such as "The Christmas Chronicles".

Netflix surpassed earnings estimates of Dollars 24 cents per share, but revenue fell short of Refinitiv's expectations of USD 4.21 Billion.

Netflix said its programming was so popular it now accounts for about 10 percent of television screen time in the United States.

In a statement to The Associated Press, Pond 5 said the footage "was taken out of context" and the company wanted to "sincerely apologize".


The results were announced two days after Netflix revealed plans to raise the price of a monthly subscription for U.S. consumer by $1-$2 per month, depending on the plan they are on.

Previously, Netflix had continued to offer a basic, $8-a-month streaming plan while raising rates on more comprehensive plans with better video quality and options to watch simultaneously on different devices.

Michael Pachter and his team at Wedbush wrote that they expect Netflix's content spending to "trigger substantial cash burn for many years", and said future price hikes could cause a slowdown in subscriber growth.

Management said domestic average selling price will "improve over the course of the year" and result in revenue growth for 2019. The company also discussed its competition saying that it loses more viewers to Fortnite than other streaming platforms such as HBO.

Ted Sarandos, Netflix's chief content officer, talked in an investor interview following the release of results.

Netflix's growth in the U.S has slowed considerably in recent years as it has saturated the market.

In Thursday's extended session, Netflix shares dropped 3.8% to $339.70.

The horror film Bird Box, starring Sandra Bullock, began streaming in late December and was viewed by 45 million subscribers.


Popular
  • Netflix raises prices for U.S.  subscribers

    Netflix raises prices for U.S. subscribers

    In recent years, Netflix has spent billions each year to produce original content and acquire the rights for existing content. Consumers on the basic plan, which offers SD streaming on just one device, now costs $9 per month rather than $8.
    Americans Blame GOP and Trump for Government Shutdown, Poll Says

    Americans Blame GOP and Trump for Government Shutdown, Poll Says

    Pelosi also has shown no interest in accepting a wall - she has called it an "immorality" - in exchange for immigration fixes. But Trump accused the Democrats of only wanting to score points against him with a view to the 2020 presidential elections.
    Man City put seven past Rotherham to reach FA Cup fourth round

    Man City put seven past Rotherham to reach FA Cup fourth round

    We wish Brahim all the best and moving to Real Madrid is no bad step and hopefully he can get the minutes he wants. Versus Rotherham we played with nine players who didn't play against Liverpool, but it was still a good selection.
  • Man City boss Guardiola dismisses 'ridiculous' four-peat hopes

    Man City boss Guardiola dismisses 'ridiculous' four-peat hopes

    The former Barcelona and Bayern Munich boss added: "Specifically with Fernandinho's role, it's so hard to find". I don't talk about players not here, never did and never will". "It's complicated, so, so complicated".
    Tulsi Gabbard to Run for President in 2020

    Tulsi Gabbard to Run for President in 2020

    Gabbard moved to Hawaii when she was two and embraced Hinduism as a teenager and is well-versed in the scriptures, PTI reported. If elected in 2020, she could be the youngest and first woman to be elected as the United States president.
    No excuses from Leicester City boss Puel after humiliating FA Cup exit

    No excuses from Leicester City boss Puel after humiliating FA Cup exit

    The floodgates opened after the break with Gabriel Jesus, Riyad Mahrez , Nicolas Otamendi and Leroy Sane on target. Manchester City swept to its biggest win under Pep Guardiola with a 7-0 thrashing of second-tier Rotherham .
  • UK Queen Elizabeth’s husband Philip, 97, recovers after auto  crash

    UK Queen Elizabeth’s husband Philip, 97, recovers after auto crash

    There is no legal age in Britain to stop driving, but after 70 people must renew their licence every three years . Norfolk police said they were called to the scene on the A149 highway just before 3pm local time (2am AEDT).
    Steven Spielberg casts unknown NJ teen Rachel Zegler in ‘West Side Story’

    Steven Spielberg casts unknown NJ teen Rachel Zegler in ‘West Side Story’

    The 1961 film adaptation won 10 Oscars, including Best Supporting Actress for Moreno, now 86, Best Picture and Best Director. Zegler wrote, "As a Colombian-American woman growing up in this day and age, strong roles like Maria are so important".
    A Special Peek at Marvel Studios’ ‘Captain Marvel’

    A Special Peek at Marvel Studios’ ‘Captain Marvel’

    That probably explains why Nick Fury's final act before turning to dust in Avengers: Infinity War was to send her a distress call. Release date: Captain Marvel will arrive in cinemas on March 8, 2019 in Ireland and the US.
  • Giroud reveals Arsenal players happy under Emery

    Giroud reveals Arsenal players happy under Emery

    And when asked about Ozil potentially leaving in January, Arsenal's manager responded: "I am not thinking about that". It was very good for me. "We had two or three meetings together and we are working normally".
    The most memorable moments from the Golden Globes

    The most memorable moments from the Golden Globes

    Lady Gaga wore an ice blue dress with a train so magnificent people had to walk behind her and carry it. Sunday's awards were spread far and wide, with few movies or TV series winning a couple of times .
    Trump says United States  officials to make plea to lawmakers for border wall

    Trump says United States officials to make plea to lawmakers for border wall

    McCarthy said the group "never did get through the complete briefing" led by Homeland Security Secretary Kirstjen Nielsen . Trump spoke during a White House meeting with his Cabinet as the partial government shutdown continues into its 12th day.

CONNECT