Netflix Announces Share Results, Streaming Service Competition High
When it comes to streaming movies and TV series, Netflix is a popular choice among many. But just recently, the global streaming provider hit headlines after it reported earnings. According to a report by CNBC, Netflix revealed that during the first quarter, the diluted earnings per share is 6 cents, which is an increase compared to the 5 cents per share in the year-earlier period.
The source stated that the company was able to garner a revenue of $1.96 billion. A year ago, the figure obtained was a $1.57 billion. Analysts previously expected that Netflix will report Q1 earnings of about 3 cents per share on $1.97 billion in revenue. However, despite the results in earnings, Los Angeles Times detailed that shares in Netflix decreased more than 12 percent in after-hours trading. By Monday, it decreased to nearly 3 percent, leaving an end result of $108.40.
It is made known that the online streaming platform added 2.23 million subscribers in the U.S. alone. It's actually higher than the anticipated number and it's all thanks to shows like "Fuller House" and documentary series "Making a Murderer." However, the increase in number is found out to be below the same period a year ago when Netflix added 2.28 million subscribers more. As of the current, Netflix has a total of 81.5 million members worldwide.
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It seems like the reason for investors lack of satisfaction with the results are caused by the agitation by the growing competition and warnings that the present quarter will be frailer than expected. The company announced that they are expecting to add in 2 million more subscribers by inviting international consumers in the second quarter. Deadline noted that back in January, Netflix expanded their streaming service in 130 new markets including India, the Philippines, and Saudi Arabia.
Netflix will be bringing in new seasons with their original series in Q2. The list includes "Bloodline," "Grace and Frankie," "Orange is the New Black," and "Unbreakable Kimmy Schmidt."
