Netflix predicts it will hit 100 million subscribers this weekend

by Frankie Norman April 19, 2017, 1:35
Netflix predicts it will hit 100 million subscribers this weekend

The company made the announcement Monday in a letter to investors announcing the company's financial result for the first three months of 2017. The streaming service gained just 5 million subscribers globally in the last quarter, it said yesterday, missing the 5.3 million additions FactSet analysts predicted and the 5.2 million Netflix itself forecasted last quarter. The shares rose less than 1 percent to $147.71 at 8:00 NY before the official market open. "Considering the new seasons of House of Cards and Orange is the New Black are scheduled for release later this quarter as well, we believe guidance could prove conservative".

"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. Global net additions were down from 5.1 million in the previous quarter to 3.5 million. Analysts predict Netflix will make $482 million on revenue of more than $11 billion for the entire year.

In turn the number of net additions have fallen; Netflix now expects to have 8.15 million net adds, compared to 8.42 million net adds in the first half a year ago. Consolidated revenues rose to $2.6 billion, delivering a net profit of $178 million. Netflix is now forecasting operating margin at 4.4% in Q2, placing it on track to reach its 7% target for the full year.

Analysts were expecting slower growth this quarter, after Netflix expanded to more than 130 new countries in the year-earlier period.

The inclination has presented Netflix with more rivalry in the contest for home entertainment budgets.

"Since the launch of The Ridiculous 6, Netflix members have spent more than half a billion hours enjoying the films of Adam Sandler", reads the earnings report. The company has expanded in stages, and is having more success with older markets.

"We have come to see these quarterly variances as mostly noise in the long-term growth trend and adoption of internet TV", the company said in a statement (PDF). 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.

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