Netflix isn't too anxious about competition from fellow streaming services.
On the subscriber-growth miss, the company's stock fell three per cent in after-hours trading before rebounding a bit but still trading below Monday's closing price.
Netflix has zero interest in following Amazon into the realm of live sports, the company, now with 94 million paid subscribers, made clear to its investors on Monday. Beating analyst predictions of 2.4 million additional users for what is generally regarded as the slow quarter, the company managed to gain 3.2 million, Reuters reports.
In terms of revenue, Netflix saw a 35% year-over-year increase to reach $2.64 billion in the first quarter, meeting expectations, and EPS was $.40 per share, above the $0.37 that analysts expected.
The Los Gatos, Calif. -based company reported net subscription additions of 4.94 million for the quarter, falling shy of its guidance.
The inclination has presented Netflix with more rivalry in the contest for home entertainment budgets.
More than half of Netflix's total subscriber count hails from the United States, but it's expected that majority of the total subscribers will be from overseas by the end of 2017.
The model works from a customer viewpoint because it is such a great value, Pachter said.
Netflix revealled it will spend more than US$1 billion in marketing its content this year as its slate of originals continues to expand, and will up its investment in programmatic advertising.
"We definitely have YouTube envy", Hastings said.
By comparison, Google says about 1 billion hours of video per day are watched on its mostly free YouTube service. "We're pleased with our worldwide growth and we've got a lot of growth left in the U.S.as well". Netflix said that due to certain content moves, particularly moving "House of Cards" from Q1 to Q2, some net additions to its subscriber count also shifted from Q1 to Q2.
But if it wants to keep investors happy, the company will eventually have to improve its relatively low profit margin. Q1 was the first quarter of consolidated profit for our global segment as profit growth in our more mature territories offset investments in newer markets.
The firm increased revenues by over a third to $2.64bn for the quarter compared to the first three months of a year ago, while net income rose to $178m from $28m. When you look at the last 5 years, everyone's anxious every quarter about saturation in the USA, and we just continued to grow.
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