Netflix has grown slower than it anticipated within the first three months of the yr, however insisted that the chance for progress was “gigantic”.
The streaming agency added 4.95 million new subscribers within the quarter, fewer than the 5.2 million it had forecast.
Within the US, the agency added a 3rd much less new members than the identical interval a yr in the past, whereas abroad members fell 22%.
Netflix blamed the drop partly on shifting a few of its standard reveals to the second quarter.
The agency stated its Home of Playing cards sequence, which final yr debuted within the first quarter however for this yr has been pushed into the second quarter, was the principle cause for the lower-than-expected subscriber progress.
Netflix stated it nonetheless anticipated so as to add eight.15 million new members in whole for the primary half of the yr, just under the eight.42 it added within the first half of final yr.
And by this weekend, the agency stated it anticipated to achieve 100 million subscribers globally.
“It is a good begin,” stated chief govt Reed Hastings.
He stated that the expansion of the worldwide web meant the chance for the agency was nonetheless “gigantic”, and stated the agency deliberate to proceed investing in movies and reveals geared toward growing its membership.
“Now we have come to see these quarterly variances as largely noise within the long-term progress development and adoption of web TV,” he added.
As ever, Wall Road is obsessive about person progress above nearly another metric a know-how firm can supply.
Netflix did not add as many new customers within the final quarter as buyers had been anticipating, each within the US and internationally.
Aggressive advertising and marketing remains to be an enormous a part of Netflix’s expenditure – $1bn anticipated this yr – so it reveals these new subscribers actually aren’t coming simple.
However I believe issues will seemingly enhance this yr with the roll out of the brand new seasons of Home of Playing cards and Stranger Issues, each blockbuster reveals that characterize the perfect of their “Originals” model.
The agency elevated revenues by over a 3rd to $2.64bn for the quarter in comparison with the primary three months of final yr, whereas web earnings rose to $178m from $28m.
The agency’s shares fell in after hours buying and selling, dropping three% with buyers disillusioned by the slower-than-expected progress.
Netflix stated it could proceed to give attention to unique programming, aiming to “please numerous tastes with a large breadth of content material”.
Netflix began making its personal reveals in 2013, with Home of Playing cards one in all its first large hits and Stranger Issues extra just lately. The corporate plans to spend extra on unique content material this yr and cut back outlays on licensed materials reminiscent of films.