Netflix CEO Reed Hastings. (GeekWire Photo / Kevin Lisota)
In what is a traditionally a slow quarter for Netflix, the streaming giant cruised past its own expectations for new subscribers, finishing the quarter with more than 100 million global subscribers for the first time.
Netflix stock is up close to 9 percent in after-hours trading, pushing it past the company’s previous high mark set back in June. The streaming giant reported 5.2 million net new subscribers in the third quarter — 1.07 million in the U.S. and 4.14 million internationally. Those figures came in above estimates that Netflix would add 3.2 million new subscribers worldwide for the quarter, including 2.6 million internationally and 600,000 in the U.S. Netflix now has 103.95 million global members.
Netflix came in a little short on expectations for revenue and earnings, but the figures still fell in the range of estimates offered by analysts following the company. Netflix reported diluted earnings per share of 15 cents on 2.67 billion in revenue. Analysts surveyed in advance by Yahoo Finance expected Netflix to post earnings of 16 cents per share on $2.76 billion in revenue.
In terms of the streaming market, a report released in April shows Netflix is still in the lead, but it is facing plenty of competition. Amazon, YouTube and others are big players in the streaming world, and more services hit the market all the time.
Netflix has established its identity as a streaming service, and the company doesn’t expect to go in several different directions the Amazon has.
“If we try to out-Amazon Amazon, then that’s a losing battle,” Netflix CEO Reed Hastings said during an interview with CNBC in May. “What we have to do is be the speciality play; we are trying to be Starbucks and they are trying to be …read more