Arab Today, arab today netflix hammered by weak subscriber growth
Last Updated : GMT 21:05:34
Arab Today, arab today
Arab Today, arab today

Netflix hammered by weak subscriber growth

Arab Today, arab today

Arab Today, arab today Netflix hammered by weak subscriber growth

on-demand internet streaming media provider Netflix on a laptop screen in Stockholm
New York - AFP

 Netflix shares plunged Wednesday after its quarterly report showing disappointing subscriber growth for the streaming video group which has been expanding globally.
Shares in Netflix sank around 25 percent in after-hours trade after the California group said it gained just three million members in the past quarter, to boost its subscribers to 53.1 million worldwide.
The disappointing growth news came the same day Netflix learned of a powerful new rival, with Time Warner's HBO announcing plans to launch as a standalone streaming service that won't require cable or satellite subscriptions.
"This stock was just brutalized after its report," said Jon Ogg at the finance blog 24/7 Wall Street, adding that investors were unsettled by a "disappointing subscriber add rate."
Netflix began operating in the French market last month in the beginning of its second wave of expansion across Europe, followed by launches in Austria, Belgium, Germany, Luxembourg and Switzerland.
The service has been available in Britain, Denmark, Ireland, the Netherlands, Norway, and Sweden since 2012.
Netflix gained just over two million subscribers outside the US, and one million in the US market, which was below most forecasts, including its own.
"For the prior three quarters, we under-forecasted membership growth. This quarter we over-forecasted membership growth," said a letter to shareholders from Netflix chief executive Reed Hastings and chief finance officer David Wells.
The Netflix executives said they were not surprised by the HBO announcement, and said they did not see a major impact from the new rival.
"Starting back in 2011 we started saying that HBO would be our primary long-term competitor, particularly for content," the letter said.
"The competition will drive us both to be better. It was inevitable and sensible that they would eventually offer their service as a standalone application. Many people will subscribe to both Netflix and HBO since we have different shows, so we think it is likely we both prosper as consumers move to Internet TV."
In its quarterly report, Netflix reported a profit of $59 million, on revenue of $1.4 billion.
Netflix shares were nearly flat in the regular Wall Street session, and the slide came only after its earnings report was released, and some analysts said the HBO offering would have only a limited impact.
Nat Schindler at Bank of America/Merrill Lynch said that if HBO is priced at a "reasonable" level of $8 to $12 a month, many consumers would take both services.
"However, there will be a cohort of consumers that only purchase HBO," he said, which would reduce the potential for Netflix growth.
"HBO's competitive position against Netflix is interesting as it has some of the best original content in the world and original content has been one of the largest drivers of Netflix subscriber growth in recent quarters," he added in a note to clients.
"We believe Netflix has broader appeal with its wider range of content for family and children, while HBO is primarily focused on mature content which should limit the competitive impact."

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today netflix hammered by weak subscriber growth Arab Today, arab today netflix hammered by weak subscriber growth

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures

GMT 06:25 2017 Thursday ,23 February

Bupa Arabia sponsors SMEA forum

GMT 06:11 2017 Thursday ,23 February

Football: Turkish company wins Qatar World Cup contract

GMT 05:46 2017 Thursday ,23 February

SABIC net profits fall in 2016

GMT 21:01 2017 Wednesday ,22 February

Saudi Aramco mulls offering citizens discounted shares

GMT 16:50 2017 Wednesday ,22 February

Yahoo salvages Verizon deal
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday