The stakes for Netflix are a lot higher now
The streaming giant has watched its stock soar nearly 500 percent since 2014 as sequential quarters of subscriber growth made up for its mounting content spend, estimated at $15 billion in 2019. Then, on July 17, Netflix reported its first loss of U.S. subscribers since its bungled 2011 Qwikster launch, sending the stock down more than 10 percent.
In a note to shareholders and a subsequent Q&A video, CEO Reed Hastings explained that "there was no one thing" that caused a loss of 130,000 U.S. members and lower-than-expected 2.83 million additions abroad. Instead, he chalked it up to a variety of factors, including a price increase that went into effect in May and a dearth of originals that would drive people to pull out their credit cards.
The international market is where Netflix has the most opportunity to grow. During the Q&A, Hastings noted that there are 700 million households abroad that pay for TV . Netflix currently has just 91.5 million subscribers outside of the U.S., giving it plenty of runway to add new members as it bulks up on local language originals and licensed programming.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Boeing's 737 hit; Iran tensions and oil; Microsoft soarsToday’s top business headlines: - House passes $15 minimum wage bill - Trump to look at Pentagon contract with Amazon - Back-to-school sales tax holiday - Toys ''R'' Us is making a comeback in the US
Read more »
Netflix stock drops 10% after earnings report reveals drop in global growthThe value of Netflix shares dropped 10% on Thursday, one day after the streaming service reported its first drop in global growth.
Read more »
Netflix shares plunge as global growth falls short, U.S. customers shrinkNetflix loses U.S. streaming customers for the first time in eight years and misses targets for new subscribers overseas. More here:
Read more »
The Netflix selloff is just a hiccup in a great growth stockIn fact, this weakness is a great opportunity to buy Netflix stock, says Ian Winer.
Read more »
Netflix Subscriber Growth Sharply Slows During Second QuarterNetflix Stock Drops Sharply in Early Thursday Trading After Quarterly Subscriber Shortfall
Read more »
Netflix sinks on subscriber losses, analysts still see growthWall Street brokerages stuck to a positive outlook on Netflix Inc on Thursday, b...
Read more »