Netflix reports weaker-than-expected new subscriptions in the second quarter

Netflix reports weaker-than-expected new subscriptions in the second quarter

But Netflix missed its target badly in the April-June period, causing its high-flying stock to plummet by about 14 percent to $345.63 in extended trading.

Netflix reported Q2 revenue of $3.91 billion, up 40% year over year, and earnings per share of 85 cents (versus 15 cents in the year-ago quarter).

Subscription numbers are one of the most closely watched metrics for Netflix, and Daniel Ives, a technology analyst at GBH Inisights, said the miss was concerning.

Despite this, Netflix added 5.1 million households over the three-month period - giving it 130 million subscribers overall with 57.4 million in the U.S. and nine million in the UK. Revenue was up 6 percent to $3.9 billion.

Revenue: $3.91 billion vs. $3.94 billion estimated, according to a Thomson Reuters consensus estimate.

The company will spend as much as $8bn on programming this year.

"We had a strong but not stellar Q2 (second quarter)", Netflix said in a letter to shareholders. The BBC report on this news suggests investors don't lose their heads, especially as Q2's results come in the wake of "two extremely strong quarters of comfortably beating expectations on adding subscribers." .

Degenkolb wins chaotic Tour stage over the cobbles
Thank you for signing up for the 5 Things to Know Newsletter. "The first days were not good enough, the legs were not good". That elevated Peter Sagan to second and John Degenkolb to third, with Brit Mark Cavendish credited with eighth place.

Despite the weak quarter, and a lowered outlook for the third quarter, Emarketer expects Netflix to remain the clear leader among video streaming services in the US. Thirdly, it is pretty easy to chop and change streaming providers and some say the Netflix formula for content, and even its own shows, is getting stale. Earlier this month, it debuted its first Indian original series, "Sacred Games", part of a slate of new shows aimed at the vast Bollywood entertainment market.

Internationally, 4.5m net additions grew 8% year over year on broad market growth.

Hastings said the company would make adjustments to account for foreign exchange rates in order to "steadily" increase operating margins.

Inc plans to add more regional content in India as it builds the Prime video service around the world. And AT&T Inc has promised to boost investment in HBO after taking over the network in its recent acquisition of Time Warner.

Meanwhile, cable distributors are offering smaller and cheaper bundles of channels.

Going forward, "We anticipate more competition from the combined AT&T/WarnerMedia, from the combined Fox/Disney or Fox/Comcast as well as from worldwide players like Germany's ProSieben and Salto in France", the company said in the investor letter. "Our strategy is to simply keep improving, as we've been doing every year", the company said.

Related news:

Hot News

isis-killer-beheading-video-story-top Svi Mykhailiuk turning heads in Summer League
Jul 17, 2018 - 19:29
A 12-man roster will be selected from the group to participate in the 2019 World Cup in China, and 2020 Olympics Games in Tokyo. That included his first meeting with James over the weekend in Las Vegas, which Walton came away encouraged by.

isis-killer-beheading-video-story-top Putin: Trump was 'of no interest' to Russian Federation before 2016 election
Jul 17, 2018 - 19:09
Responding to reporters questions on the Russian Federation investigation, President Donald Trump said there was "no collusion". Brennan said, "Because clearly he's concerned and, I think, fearful about what might be exposed in that investigation".

isis-killer-beheading-video-story-top Trump says Russian Federation probe a 'disaster' for US
Jul 17, 2018 - 18:52
The indictments raised the stakes for the Helsinki summit, even as aides to both Trump and Putin ratcheted down expectations. US President Donald Trump has defended Russian Federation over claims of interference in the 2016 presidential election.

isis-killer-beheading-video-story-top 'Mamma Mia!' sing-along returns with star-studded sequel premiere
Jul 17, 2018 - 17:16
Here We Go Again is released on 20 July, and has been touted by lead actor Amanda Seyfried as a "better" movie with "more heart". The pop icon recently admitted she was "terrified" when she stepped on to the set for the first time after joining the cast.

isis-killer-beheading-video-story-top Thai Cave Rescuer Might Sue Elon Musk for Calling Him 'Pedo Guy'
Jul 17, 2018 - 15:26
He said that the child-sized submarine Musk provided during the rescue operation " had absolutely no chance of working ". Musk later deleted the tweets and did not immediately respond to a request for comment through Tesla.

isis-killer-beheading-video-story-top Home Run Derby Open Thread
Jul 17, 2018 - 14:55
Jesus Aguilar represented the Milwaukee Brewers in the Home Run Derby on Monday night, but fell short in the first round . The Home Run Derby has caught a lot of flack of late, but this year's event surely made some rethink their opinion.

Michael Cohen trolls Trump over Russian Federation summit
Jul 17, 2018 - 12:47
CBS' Margaret Brennan said she was messaging some USA officials during the speech who said they were turning off the television. Looking back over the week, from Brussels to Britain to Helsinki , Trump's message has been clear, consistent and startling.

isis-killer-beheading-video-story-top Hot and steamy afternoon with an isolated thunderstorm
Jul 17, 2018 - 10:31
Comfortable conditions are expected for Wednesday through Friday , with daytime highs expected in the low 80s. Tuesday will start dry for most followed by thunderstorms developing in the mountains just after lunch.

isis-killer-beheading-video-story-top Politics of IN senate race could be impacted by supreme court nominee
Jul 17, 2018 - 09:54
The Gallup Poll was conducted between July 2nd and July 8th with a 3 percent margin of error. Nearly two-thirds of Americans believe that the landmark Roe v.

isis-killer-beheading-video-story-top Conte thanks ‘amazing’ Chelsea fans
Jul 17, 2018 - 09:29
Sarri has given his first interview since joining Chelsea , speaking to official club app The 5th Stand. I think it helped me for the organisation of my work.

isis-killer-beheading-video-story-top Manchester United agree deal for Daley Blind to rejoin Ajax
Jul 17, 2018 - 08:26
Defender Daley Blind is leaving Manchester United and returning to his boyhood club Ajax in a transfer of historic proportions. Sources have told ESPN FC the deal will be worth £14.1 million, which could rise to £18.5m with add-ons.

isis-killer-beheading-video-story-top Hawaii volcano: Lava bomb crashes through roof of tour boat, injuring 23
Jul 17, 2018 - 05:52
The remaining 9 passengers drove themselves to the hospital, and the Fire Department reported their injuries were not as serious. The lava punctured the boat's roof and it returned to Wailoa Harbor, the fire department said.

isis-killer-beheading-video-story-top Economic growth in China falls as USA trade battle threatens further slowdown
Jul 17, 2018 - 05:43
China disputes the US allegation, saying last week , "The tariffs are typical unilateralism, protectionism and trade bullying". The dispute has jolted global financial markets, raising worries a full-scale trade war could derail the world economy.

isis-killer-beheading-video-story-top 2 die in France during World Cup celebrations
Jul 17, 2018 - 05:32
There were many broken windows, an overturned vehicle and drawings on walls that included the phrase "Liberte, Egalite, Mbappe". Before the Chinese wouldn't have been bothered who won, but now they want to know.

isis-killer-beheading-video-story-top Trump Further Antagonizes Allies Ahead of Meeting With Putin
Jul 17, 2018 - 05:18
Ahead of their meeting at Finland's Presidential Palace, both leaders made brief opening remarks to reporters. Putin said the talks were "open and business-like" and said, "I think we can call it a success".