Netflix: Why our subscriber growth rates were disappointing

Netflix is due to report earnings after the close on Monday

Netflix is due to report earnings after the close on Monday

Q1 global subscriber growth (net additions): 3.53 million, versus Wall Street forecasts 3.9 million, and Netflix guidance of 3.7 million.

Breaking that total down, the OTT video market leader picked up 1.42 million subscribers in the United States and the other 3.53 million customers internationally, raising its totals in those regions to 50.85 million and 47.89 million, respectively.

Sacred Games, a Netflix original series in India, was also used an example of an global show Netflix is producing that is Hollywood-level quality.

Netflix has reported lower than expected subscription growth in the first quarter of 2017, a result it says was driven by delays to flagship content.

Before he signaled the interviewees to end the session, Hastings let us all in on how he sees the future of Netflix, a service that is streaming a little more than one billion hours of content per week.

In a letter to shareholders, Netflix said that in regards to its Q1 performance, though it missed relative to guidance, "There were no substantial variations from our January guidance forecast".

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

Netflix's investment in original programming has inspired competing technology companies and TV networks up their spending, creating more competition for attention and eyeballs. Netflix ended March with almost 48 million subscribers outside the U.S. Analysts are forecasting net income of $US477.2 million, or $US1.09 a share, on revenue of $US11.2 billion, based on the average of estimates compiled by Bloomberg.

The company made the prediction Monday, with the release of its first-quarter earnings.

According to Mark May, of Citi Research (who has given Netflix a neutral rating), "The disclosure that Netflix is going to pass the 100 million subscriber count this weekend suggests it is trending ahead of schedule towards its sub guidance for 2017". But we don't think it will have much of an impact on us as Netflix is largely complementary to pay-TV packages. Movie and TV studios typically also demand more money as more people subscribe to channels to in an effort to make as much as possible off their content.

Netflix added almost five million subscribers worldwide in the first quarter of 2017, down from more than seven million subscribers it added the quarter before that.

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