Netflix could surpass 100 million subscribers by the end of this week

Danny Woods
April 21, 2017

Breaking that total down, the OTT video market leader picked up 1.42 million subscribers in the U.S. and the other 3.53 million customers internationally, raising its totals in those regions to 50.85 million and 47.89 million, respectively. "But Netflix clearly had a vision before those devices became so ubiquitous".

Netflix stock is still on a steady march downward after the company disappointed investors with the number of subscribers it added during the first quarter.

The understated reaction reflects Hastings' ambition to build the world's largest video channel.

Using HBO as an example, Hastings said while over 10 years Netflix has grown to 50-million, HBO has also continued modest growth - meaning that the growth of one service doesn't necessarily mean the demise of the other.

A lot of this has to do with the fact that the latest season of the runaway hit House of Cards was pushed back, which attracted millions of new users to come rolling in during the recent quarter.

Netflix's lackluster subscriber addition numbers is mostly due to its less than stellar content offerings during Q1, analysts say.

'The model works from a consumer perspective because it is such a good value, ' Pachter said.

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A lot of companies and social networking services have invested in streaming live sports events in the past year, but don't count Netflix among them. Royal Bank of Canada reiterated a buy rating and issued a $175.00 target price on shares of Netflix in a research report on Tuesday, March 14th.

The firm's shares fell in after hours trading, dropping 3% with investors disappointed by the slower-than-expected growth.

The company is planning a significant marketing push to keep growing. Analysts found that Los Gatos earned $178 million on revenue of $2.6 billion in the first three months but Netflix will make $482 million on revenue of more than $11 billion for the entire year.

However, he feels that the full subscriber count for the first half of this year could end up being closer to his first-half estimate because he predicts a commanding performance in the second quarter.

A costly worldwide expansion has depressed Netflix's profits.

Netflix expects to add another 3.2 million subscribers and push its total to 101.95 million during the second quarter, but that could prove to be a conservative figure if current growth trends continue for the company. During the same quarter in the previous year, the company posted $0.06 earnings per share.

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