Netflix Shares Slip Amid Streaming Battle
Streaming giant, Netflix, has forecast a drop in new customer acquisitions for the June quarter, with a deeper-than-expected share trade off following its latest earnings results.
Despite posting quarterly results which beat market expectations, shares in Netflix slipped 1% after the bell to US$355.02.
The news comes as the global video streaming market continues to intensify, with rising competition from the likes of Apple tv+, Disney+, Stan, Foxtel, 10 All Access, and Amazon Prime Video.
The streaming giant expects to gain five million new streaming subscribers from April to June – down from around 5.48 million analysts expected.
Between January and March, Neflix attracted 7.86 million paid subscribers internationally, versus 7.14 million analysts expected.
As previously reported, Disney+ is forecast to be a formidable threat to Netflix, citing a strong brand and parent-approved content, and costing around half the price ($7/month versus US$13/month).
The service is set to launch late this year.
Netflix debt has continued to skyrocket, notching $US10.36 billion in 2018, up from $US3.36 billion in 2016.
For Q1Y19, net income jumped to $US344.1 million, versus $US290.1 million the year prior.
Total revenue notched $US4.52 billion, beating analysts expectations for $US4.50 billion.
The company is set to spend more than US$7.5 billion in shows and TV content this year.