The stock price is down more than 16% in after-hours trading following the earnings release. The statistic that jumped out was Netflix‘s disclosure that it added 1.16M domestic streaming customers in the quarter — which is below the 1.56M that analysts expected. That means Netflix will fall short of its prediction to add 7M this year; it lowered its forecast to a maximum of +5.25M paid subs. The Q3 report shows net income of $7.7M, -87.7% vs the period last year, on revenues of $905.1M, +10.1%. The revenue figure came in slightly ahead of the $904.9M that analysts projected. Earnings per share, at 13 cents, were way ahead of the 4 cent consensus forecast. Still, the lighter-than-expected domestic streaming sub growth number left Netflix with 25.1M total subscriptions, below expectations for 25.3M, and revenues in the business of $556M, behind analysts’ prediction of $557.6M. Other numbers were roughly in line with what the Street anticipated. The domestic DVD rental business had $271M in revenue with 8.5M subscribers. And the international streaming business generated $80M in revenue from 4.3M subscriptions. “Internet TV is the future of television, and we are leading the change,” CEO Reed Hastings and CFO David Wells said. But B. Riley & Co analyst Eric Wold, who has a “sell” on Netflix, warns that “increasing competition and ubiquitous content will drive consumers to look at other options.”


I wouldn’t use Netflix if it were free.
HULU PLUS = Commercials.
NETFLIX = No commercials.
i hate that internet streaming will be the norm. what will happen when there’s an internet outtage? streaming also eats up the internet bandwidth and allocation users get (the same way cellphone data usage has steadily been increasing and causing issues), driving their internet access costs up via the service provider. streaming should be a welcome addition, not substitute format for dvds itself.
besides, netflix’s offerings of streamable content really isn’t that great. it is too limited. and not everyone can connect their television sets to the internet, even if they wanted to: there are not enough solutions yet available to cover all the connectivity issues.
Many service providers don’t have usage limits and those that do start at 250 to 300 gigs a month. There just isnt a bandwidth crisis in America. So i dont get your point.
My confusion is compounded because you think dvds are the answer. Issues of content and tv compatibility will diminish over time. So whats better about dvds over streaming?