Netflix Tanks After Domestic Streaming Subscriber Adds Miss Estimates


Photo: Hector Vivas/Getty Images

Netflix beat on EPS $0.13 (est. $0.04), revenues barely so at $905 million (est. $904.89 million).But domestic subscription adds missed estimates, according to the company’s earnings release.

They added 1.6 million such subscribers in Q3, meaning it is likely to miss it’s year-end target of 7 million. 

They’ve added a total of just 1.7 million through three quarters. 

Free cash flow also collapsed -31 million after at least four straight quarters of gains.

The stock is down more than -15 per cent in after-hours trading.

“While we are not growing membership as fast as in 2010,” CEO Reed Hastings says in the release, “we think that over time nearly all U.S. households will be broadband households, nearly all video will be Internet video, and that as our content and member experience continue to improve faster than competitors, our long-term domestic market opportunity remains 2-3x that of linear HBO.”

Net subscriber adds were at the higher end of guidance at 25.1 million.

Click here for updates as the number comes out >

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