Netflix Adds Seven Million New Customers

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The stronger than expected growth - a record for the third quarter - sent shares up 11% in after-hours trading.

The shares jumped as much as 9.7 percent, the most since April, Wednesday in NY trading.

Despite the subscriber gain, Netflix continues to burn cash, as the loss reached nearly $860 million in the quarter. "One of the big questions after they missed the earnings and membership numbers in Q2 was whether it was just an aberration or a sign of weakening business", Forrester principal analyst Jim Nail said. Netflix has a twelve month low of $178.38 and a twelve month high of $423.21.

Netflix said it expects to book content expenses of up to $US8 billion this year.

Netflix is behind shows such as The Crown and Orange Is The New Black.

Sky plc, the owner of Sky News, earlier this year struck a partnership deal with Netflix.

The streaming superpower, which hit its $4bn (£3.03bn) revenue estimate, was under pressure to up subscriber growth after falling short of expectations in the previous quarter. Analysts predict 8.25 million additional subscribers, according to FactSet.

Netflix is showing accelerating growth as the company expands.

Netflix chief content officer Ted Sarandos said in the earnings interview that Sacred Games and Ghoul along with the original movie Love Per Square Foot, has helped grow the awareness of the service that made its India debut in January 2016.

Over the next few weeks, we should expect to start seeing how companies have performed.

The company exceeded forecasts in both US and worldwide markets but the bulk of the new subscribers came from outside the United States, where the company has been investing aggressively.

"We'd prefer to focus on making our service great for our members, which would include producing local content, rather than on satisfying quotas, but we anticipate that a regional content quota which approximates the region's share of our global membership will only marginally reduce member satisfaction", the letter says.

As Netflix's third-quarter outcomes portrayed it is faring well in other arenas.

Netflix, Inc, an Internet television network, engages in the Internet delivery of television (TV) shows and movies on various Internet-connected screens.

"Rising interest rates could make Netflix increasingly vulnerable to a higher cost of capital", CFRA research analyst Tuna Amobi said.

Netflix will face stiff competition, with Walt Disney, the world's largest entertainment company, looking to launch its own on-demand services next year, as is AT&T, the parent of Warner Bros and HBO. It cut its projection of negative cash flow to closer to $3 billion.

On the financial front, Netflix earned $403 million on revenue of $4 billion in the quarter. Earnings per share were a solid $.089, well ahead of the $0.68 that had been forecast.