Netflix's first-quarter subscriber additions misses estimates

Netflix: Nope, we don't want sports

Netflix said that due to certain content moves, particularly moving "House of Cards" from Q1 to Q2, some net additions to its subscriber count also shifted from Q1 to Q2. It's bullish on adding subscribers next quarter, predicting 3.2 million net additions compared to 1.68 million the year before.

The US-based streamer added 1.42 million US subscribers and 3.53 million internationally during the period, down on its projections of 1.5 million and 3.7 million respectively. However, all bets are off today, as the stock marched onward and downward and seem destined for a close in the $140 range, if not below $140 a share. Because of those expenses, Netflix said profit in the period will be 15 cents a share, short of analysts' estimate of 23 cents.

Netflix, said it expects to add 600,000 subscribers in the United States in the current quarter, above the FactSet estimate of 364,000.

Pachter and other analysts wonder how long Netflix will be able to hold the line on price as its programming costs rise in tandem with its appeal to a more diverse worldwide audience. Well-marketed original series ventures can produce returns in excess of money spent and can also be less expensive to create than licensing fees would be for a film or television series.

Until recently, Netflix had competition in the U.S. only from Hulu, owned by major media companies like Disney, Comcast and Time Warner.

"The minute you actually pivot (investors) to an income statement, you're talking to a completely different kind of investor", Martin said.

The Los Gatos, California company now has a market value of about $63 billion.

Shares of Netflix fell from record-high territory on Tuesday and were headed for their worst session in five months after a mixed quarterly report failed to impress Wall Street.

Global net additions decreased 22% year over year, as we lapped our January 2016 launch of over 130 countries, and the accompanying early surge demand, in Q1 2016. Revenue, however, did fall, but Netflix executives said it was an expected drop because operating costs had increased this year.

The firm had predicted that it would see a growth of 5.2 million subscribers in this quarter, however the streaming firm only managed to gain 4.95 million. Global additions came to 3.53 million, which was lower than its own guidance for 3.7 million.



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