Netflix Misses Its Subscriber Forecast -- Update
January 21 2020 - 4:58PM
Dow Jones News
By Micah Maidenberg and Joe Flint
Netflix Inc. missed its forecast for subscriber growth in the
U.S., a performance that comes as the streaming giant faces
heightened competition from a gaggle of rivals.
Netflix said Tuesday that it added 423,000 domestic subscribers
in the fourth quarter compared with the third quarter. In October,
the company based in Los Gatos, Calif., had forecast an increase of
600,000 subscribers in the U.S. for the latest period.
But the company also reported an increase of 8.3 million
subscribers in markets overseas, more than the seven million the
company was expecting.
Shares in Netflix were down in after-hours trading Tuesday.
Netflix's weaker-than-expected domestic growth comes as it faces
rising pressure from rivals that have launched competing services
and are chasing creative talent in Hollywood.
In November, Walt Disney Co.'s Disney+ streaming platform went
live with a $6.99 monthly subscription rate. Apple Inc. launched
Apple TV+ the same month, offering consumers access for $4.99 a
month. Netflix's standard plan costs $12.99 a month.
This spring, Comcast Corp.'s NBCUniversal and AT&T Inc.'s
WarnerMedia plan to introduce their direct-to-consumer streaming
services: Peacock and HBO Max, respectively.
Netflix reported a fourth-quarter profit of $586.9 million, or
$1.30 a share. Revenue rose 31% to $5.47 billion. New content the
company premiered during the quarter included "The Irishman," a
film about organized crime, and "Marriage Story," a movie about the
demise of a marriage. Each film received multiple Oscar
nominations.
Write to Micah Maidenberg at micah.maidenberg@wsj.com and Joe
Flint at joe.flint@wsj.com
(END) Dow Jones Newswires
January 21, 2020 16:43 ET (21:43 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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