Published: Fri, April 21, 2017
Culture | By Stewart Greene

Netflix Nears 100 Million Subs Mark

Netflix Nears 100 Million Subs Mark

Dwelling on the subscriber guidance, the analyst said the company's domestic subscriber guidance of 0.6 million was ahead of his estimate of 0.21 million and the consensus estimate of 0.19 million. With Amazon earning a big credibility bump for Manchester by the Sea, the biggest way to make up ground on Netflix may be with movies vs. TV.

Analysts and investors still consider subscriber additions to be the company's most important metric.

The shares rose 1.4 percent to $149.30 in extended trading after results were announced.

Netflix spoke about how this fall could be blamed on the fact that it's made the decision to move some of its most popular shows to the second quarter of the year.

In another notable item from its Q1 earnings report, Netflix said it will spend more than $1 billion globally this year "marketing our content to drive member acquisition".

Netflix CEO Reed Hastings expects the next 100 million subscribers to come more quickly than the first 100 million, but he didn't provide a specific timetable during online video review of the company's first quarter. Hastings said that Netflix's user base is still well short of some of the audiences pulled in by other web giants, but he noted that unlike YouTube and Facebook, Netflix is a pay service and not as deep into global markets. The platform aims to add 3.2 million subs in Q2 2017-600,000 in the US and the rest internationally.

Netflix missed estimates for subscriber growth for first quarter 2017.

In addition, the company reported it had added 4.95 million new subscribers, lower than its own expectations for 5.2 million subscriber additions and consensus expectations of 5.3 million net added subscribers. This view gains support when you consider that Netflix met its revenue targets and exceeded the given profit goals, also by small margins.

As of the end of March, Netflix had 98.75 million global streaming members. It plans to invest $6 billion in content this year, more than major competitors, including Amazon and CBS.

Indeed, the company noted that the U.S. and other established markets have been funding worldwide expansion for several years.

The company also posted $2.64 billion in revenue - which met estimates and is up 34 percent from last year - and diluted earnings per share of $0.40, which beat estimates and is up from $0.06 last year.

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