Netflix shares jump as subscribers grow ahead of Disney, Apple attack
By Lisa Richwine and Neha Malara (Reuters) - Netflix Inc added slightly more paying subscribers than Wall Street expected in the third quarter but issued a soft forecast on Wednesday as it faces new competition from Walt Disney Co and other big companies in the streaming video wars.
By Lisa Richwine and Neha Malara
(Reuters) - Netflix Inc
The results for July through September represented a rebound from the previous quarter when Netflix lost U.S. streaming customers for the first time in eight years and missed targets for new subscribers overseas. Shares of Netflix rose 8.7% in after-hours trading on Wednesday.
That performance, combined with concerns about new competitors, had weighed on Netflix shares, which had fallen 21% from the last earnings report through regular trading on Wednesday.
From July to August, Netflix was boosted by new seasons of shows such as "Stranger Things" and "13 Reasons Why." The company added 6.77 million paid customers around the globe, topping the nearly 6.7 million average expectation of analysts, according to IBES data from Refinitiv.
Looking ahead, the company projected it would pick up 7.6 million customers in the last three months of the year. Analysts had expected a forecast of 9.4 million. The company will release a new installment of "The Crown" and Martin Scorsese film "The Irishman" during that time.
But it will face new competition starting in November from Disney+, a streaming service stocked with movies and TV shows from Disney's beloved Marvel, "Star Wars," animation and other properties.
Netflix argued that the new services would increase interest in the streaming video market broadly.
"In our view, the likely outcome from the launch of these new services will be to accelerate the shift from linear TV to on demand consumption of entertainment," the company wrote in a letter to investors.
For the third quarter, Netflix's net income rose to $665 million (518.3 million pounds), or $1.47 per share, in the reported quarter from $403 million, or 89 cents per share, a year earlier.
Total revenue rose to $5.25 billion from about $4 billion. Analysts on average had expected $5.52 billion.
(Reporting by Neha Malara in Bengaluru and Lisa Richwine in Los Angeles; Editing by Anil D'Silva and Lisa Shumaker)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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