Netflix shares fall despite the bumper balance: Streaming giant warns that fewer new subscribers will sign up in the coming months
Streaming giant Netflix published a series of bumper fragments last night – but warned that fewer new subscribers will sign up in the coming months.
The American technology giant, which supports shows like The Crown, added that it has added 1.74 million paying subscribers to its home market and 7.86 m worldwide – both its own and that of Wall Street.
Netflix also outperformed sales in the first quarter – with sales of £ 3.5 billion, an increase of 22 percent, surpassing the forecasts of £ 3.4 billion. Earnings increased 19 percent to £ 264 million – and also exceeded estimates.
Netflix & # 39; s The Crown will soon stage Olivia Colman, pictured. The American technology giant said it has added 1.74 million paid subscribers to its home market and 7.86 million worldwide
More than 25 million households with Netflix accounts have already shown David Attenborough with Our Planet, the most ambitious documentary project ever, and a 20-minute documentary about the shambolic Fyre festival.
But shares fell by 5 percent in trading outside of hours after it said it will add fewer subscribers in the second quarter.
Netflix expects a further 5 million people worldwide to sign up for their film and TV streaming service in the second quarter, compared to 5.45 million in the same period last year.
The cooler prospects are because the company faces increasing pressure from competing streaming services launched by Disney and Apple.
Disney launched its Disney Plus service in the US last week, offering a range of Disney, Pixar and Star Wars films for $ 6.99 per month – much less than the $ 13 that Netflix charges Americans for its standard package .
But Netflix took the competition away and said it still expects a year with record annual subscription growth and looks forward to & # 39; a strong slate of global content in the second half of the year & # 39 ;.
This includes new series of hit shows Stranger Things and Orange is the New Black, and the new Martin Scorsese film The Irishman.
Before the results were announced, Deutsche Bank increased its rating on Netflix shares of & # 39; Hold & # 39; to & # 39; Buy & # 39 ;.
Analyst Bryan Kraft said that Netflix & # 39; is becoming a cultural necessity for people around the world & # 39 ;.
He added that Netflix is increasingly becoming a & # 39; magnet for talent & # 39; and that there are & # 39; no other competing platforms approaching the Netflix range & # 39 ;.
Netflix was founded in 1997 by entrepreneurs Reed Hastings and Marc Randolph in California.
It was originally a DVD rental service for mail, but in 2007 it started offering customers the choice to stream movies and TV shows & # 39; s online.
The company received rave reviews when it launched its first home-made TV show, House of Cards in 2013, and now takes billions in creating original content.