Netflix falls short on Q1 subscriber growth (but should surpass 100M mark next quarter)

Shawn Knight

TechSpot Staff
Staff member

Netflix on Monday beat Wall Street expectations in terms of financials despite coming up short in the subscription department. The Los Gatos-based company raked in revenue of $2.64 billion in the first quarter with a net income of $178 million, or $0.40 per share – more than six times the profit it generated during the same period a year ago.

Netflix added 1.42 million subscribers in the US versus analyst expectations of 1.56 million. Internationally, the streaming video titan brought in 3.53 million new subscribers for the quarter ending March 31 compared to the 3.71 million additions expected.

All said and done, Netflix finished the quarter with 98.75 million subscribers.

In its letter to shareholders, Netflix said its year-over-year streaming revenue growth is benefiting from a price change in mid-2016 and will moderate over the course of the year to track membership growth more closely. The company added that it is seeing a small but steady migration to their four-stream, 4K-UHD HDR video quality tier (their high-end plan) which will keep revenue growth slightly above membership growth.

Looking ahead, Netflix said it expects to generate $2.76 billion in revenue in the second quarter. During the same period, the company anticipates adding 600,000 new US-based subscribers and 2.6 million international newcomers which would push its total subscriber base past the 100 million mark.

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Fobus

TS Addict
^^ Yeah, it's more of a guarantee to pick up already successful and popular shows or movies rather than risk duds on your own. They made a bet that their own original production will make enough of a draw to offset loss of 3rd party media.
 
Shame non of these services offer education programs or educational documentaries.

Netflix is probably the worst one, less and less content year after year and they only add their own drama shows that all feel the same cheap HBO wannabe ****. Also they have no real deal for single people, only way to pay for one user is to get non hd subscription and it costs 2$ less than the HD one with 2 accounts. To make it worth while you have to "illegally" share your account and I can't be bothered. I take the free month once a year or two and watch all the new **** so I guess it's good they don't add more content, means I can watch it all for free. (non-US customer)
 

drjekelmrhyde

TS Evangelist
I think they might find their rate of growth slowing if they keep dropping basically all other content infavor of netflix originals. None of their originals so far have appealed to me at all
I agree 100%. Their 3rd party movies are on par with Amazon's G list crap
 
Shame non of these services offer education programs or educational documentaries.

Netflix is probably the worst one, less and less content year after year and they only add their own drama shows that all feel the same cheap HBO wannabe ****. Also they have no real deal for single people, only way to pay for one user is to get non hd subscription and it costs 2$ less than the HD one with 2 accounts. To make it worth while you have to "illegally" share your account and I can't be bothered. I take the free month once a year or two and watch all the new **** so I guess it's good they don't add more content, means I can watch it all for free. (non-US customer)
Woah.. there is nothing "illegal" about sharing your account. That is the entire reason for the profiles. Any account tier you purchase can have 5 profiles on it, and be shared with whomever. The only difference is the cheapest tier can only have 2 "simultaneous" streams at once, meaning only 2 people can watch netflix at the same time on *different* devices. These are intended to be shared.