Netflix: Blowing Away Our Low Expectations (NFLX)


DVD rental service Netflix (NFLX) will blow away its Q4 subscriber growth forecast, CFO Barry McCarthy said today at an investor conference. That’s more good news for Netflix investors: Earlier this week, McCarthy boasted that the company was having a “remarkably strong” quarter despite the U.S. economic collapse.

But Netflix will be beating significantly reduced expectations; the company has already lowered its Q4 growth estimates twice this fall.

So when Netflix signs up its 9.15 millionth subscriber in the next couple of days — the high end of its growth forecast, representing almost 500,000 net new subscribers this quarter — that’ll still be below previous high-end forecasts of up to 9.25 million or 9.7 million subscribers.

The upshot: Netflix typically signs up a lot of subscribers around Christmas. So there’s still plenty of potential growth left for Netflix this quarter, especially as its Internet movie streaming service keeps getting better.

See Also:
Netflix CFO: Having A Remarkably Strong Quarter
No Winner Yet In Netflix $1 Million Coding Contest
Netflix Cuts Q4 Guidance Again, October Growth Down 30%