1. TechSpot is dedicated to computer enthusiasts and power users. Ask a question and give support. Join the community here.
    TechSpot is dedicated to computer enthusiasts and power users.
    Ask a question and give support.
    Join the community here, it only takes a minute.
    Dismiss Notice

Netflix's US subscriber growth comes up short in Q3

By Shawn Knight ยท 10 replies
Oct 15, 2015
Post New Reply
  1. Netflix’s third quarter earnings report, which hit the wire just after trading ceased on Wednesday, sent the company’s stock into an after-hours tailspin despite solid numbers across the board.

    For the period ending September 30, the streaming video service reported $1.74 billion in revenue with a net income of 29.4 million, or $0.07 per share. That’s a hair under the $1.75 billion and $0.08 per share analysts were expecting but it’s the subscriber numbers that concerned investors the most.

    Netflix added 3.62 million new subscribers over the past three months, bringing its total subscriber count to 69.17 million. Internationally, Netflix picked up 2.74 million newcomers but just 880,000 domestic subscribers – far less than its own forecast of 1.15 million subscribers.

    In a quarterly letter to shareholders, CEO Reed Hastings and CFO David Wells said the company experienced a slightly higher than expected involuntary churn rate which it attributed to the ongoing transition to chip-based credit and debit cards in the US. Or in other words, some subscribers experienced difficulties renewing their membership with new cards. As The Wall Street Journal points out, this seems odd considering new cards usually have the same account numbers as the plastic they’re replacing.

    Netflix’s share value dropped by more than 14 percent in after-hours trading although it quickly rebounded and has settled to within $4 of its closing value.

    Looking ahead, it’ll be interesting to see how the recent loss of Epix and the $1 per month price hike will affect next quarter’s performance.

    Permalink to story.

  2. NightAngel79

    NightAngel79 TS Booster Posts: 177   +45

    Lost of Epix I'm sure hurts some, but I'm willing to bet its the price increase that will really hurt performance numbers. Homie don't play price increases, lol
    (coming from guy who doesn't pay for netflix)
  3. yRaz

    yRaz TS Evangelist Posts: 2,146   +1,223

    To properly adjust for inflation the price increase should have been around $3
  4. NightAngel79

    NightAngel79 TS Booster Posts: 177   +45

    Homie still don't play that (still coming from dude that doesnt pay for it)
  5. Hexic

    Hexic TS Maniac Posts: 310   +151

    With an increase of $3, the shareholders wouldn't have time to be surprised at the earning results - because they wouldn't be shareholders anymore.

    I personally don't understand the concept of paying $9.99/mo to watch movies that I have already watched, or TV shows, that I can just hoist sails for five minutes and have the entire season. For free.

    That + Plex = my very own Netflix.
  6. NightAngel79

    NightAngel79 TS Booster Posts: 177   +45

    While all of that is certainly your prerogative, I have been dealing with this with my wife. She was always using 'the sails' and I explained to her that if she wanted her favorite shows to *not* get cancelled then she had to actually support them.

    I don't watch enough movies to care about that medium, but great shows are getting cancelled ALL the time. She complained, so I yelled at her and showed her how to use Hulu, and showed her that past seasons of stuff could be found on netflix. We eve started using the USA app (commercials are horrible on it) for Suits and Royal Pains, etc...

    Hell, if you don't watch a show on your DVR within 3 days they don't get credit for it ratings wise. It's a slippery slope, and I'm tired of shows I enjoy getting the boot.
  7. wiyosaya

    wiyosaya TS Evangelist Posts: 1,525   +514

    There used to be a big discussion on this over on the now defunct SyFy forums. I will simply say that if you have a Nielsen box in your home that is attached to your DVR, then watching within three days does count towards ratings. If there is no Nielsen box in your home attached to your DVR, then your viewing habits are not being monitored by Nielsen and do not count towards ratings.

  8. NightAngel79

    NightAngel79 TS Booster Posts: 177   +45

    You should be sorry! I'm neck deep in 6 chrome tabs about ratings and nielsen! This is one hell of a can of worms. lol

    But no, I appreciate the clarification. I was not aware of most of how that worked. But I'm going to dig in till I get the answers I want.

  9. NightAngel79

    NightAngel79 TS Booster Posts: 177   +45

    This thread: https://www.reddit.com/r/IAmA/comments/2k7h7v/i_am_a_manager_at_nielsen_and_know_everything/
    has the most comprehensive info I've ever seen. If it can be intirely trusted
  10. umbala

    umbala TS Maniac Posts: 197   +176

    Uhh, yeah... to properly adjust for inflation, people will be moving to another service.
  11. umbala

    umbala TS Maniac Posts: 197   +176

    Sounds more like you personally don't understand what the word "copyright" means. When you get movies and entire seasons of shows for FREE, you're actually stealing. Sounds crazy, I know.
    NightAngel79 likes this.

Similar Topics

Add New Comment

You need to be a member to leave a comment. Join thousands of tech enthusiasts and participate.
TechSpot Account You may also...