Netflix gains another 8.8m subscribers in fourth quarter it braces itself for a flood of new rivals
Netflix piled on another 8.8m subscribers in the fourth quarter as the streaming platform braces for a flood of new rivals.
The increase took the US giant’s total number of paying customers worldwide to 167.1m, an update last night revealed.
But the firm’s shares fell in after-hours trading after it missed Wall Street’s expectations for American subscribers, adding just 423,000 – far below the 589,000 predicted.
Netflix shares fell in after-hours trading after it missed Wall Street’s expectations for American subscribers, adding just 423,000 – far below the 589,000 predicted
The domestic slowdown will stoke concerns that Netflix is being hurt by growing competition from new rivals, after Apple and Disney both launched streaming platforms in November.
Netflix admitted the disappointing US figure was likely down to price increases and ‘competitive launches’.
In a boost to the company, however, Netflix said that it had seen ‘muted’ impact from rivals abroad.
That helped it to add 8.3m international customers during the final three months of 2019 – significantly beating the 7.2m expected by Wall Street.
The company also revealed revenue for the final three months of 2019 climbed 30.6 per cent to £4.2billion, compared with a year ago.
And during the same period, profits rose from £102million to £450million.