Netflix gains millions of subscribers but investors are still unhappy
The results suggest Netflix’s unprecedented spending spree on new movies and shows may not pay off as quickly as expected
Los Angeles — Netflix’s “Bird Box,” “You” and other new programmes helped attract millions more subscribers to the streaming service last quarter. But slower sales growth disappointed investors riding high on a 50% stock gain in recent weeks. While revenue grew 27% to $4.19bn in the fourth quarter, that came up short of the $4.21bn projected by Wall Street. The forecast for current-quarter sales also missed estimates. Netflix shares were down 3% in pre-market trading at 4.50am in New York. The results suggest that Netflix’s unprecedented spending spree on new movies and shows may not pay off as quickly as expected — despite the buzz for hugely popular hits such as the horror movie “Bird Box,” which was seen by 80-million subscribers. The online entertainment company said on Thursday that paid memberships increased by 8.84-million in the fourth quarter, beating its own forecast made in October. It predicted a record 8.9-million new customers worldwide in the current first quarter, bu...
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