Netflix to Reach 100 Million Subscribers

Candice Alexander
April 21, 2017

Netflix subscriber growth missed its mark in the first quarter of this year, but the on-demand television star expects to hit the 100-million milestone this weekend.

Sequentially U.S. subscription additions of 1.42 million was far below fourth-quarter additions of 1.93 million and even further below additions of 2.23 million in the first quarter of a year ago.

Customer numbers outside of the USA hit 47.9 million but growth slowed to 3.5 million net additions, down from 5.1 million in the previous quarter. Finally, Needham & Company LLC upgraded Netflix from a sell rating to a hold rating and upped their target price for the company from $95.00 to $135.00 in a research report on Thursday, March 16th. It is also seeking to improve content offerings to match local tastes in Asia, the Middle East and Africa but expects this to take time.

Sacred Games, a Netflix original series in India, was also used an example of an worldwide show Netflix is producing that is Hollywood-level quality.

On the issue of live sports, following Amazon's National Football League deal, Netflix commented: "That is not a strategy that we think is smart for us since we believe we can earn more viewing and satisfaction from spending that money on movies and TV shows".

"We have come to see these quarterly variances as mostly noise in the long-term growth trend and adoption of internet TV", the company said in a statement (PDF).

"They haven't shrunk", he said.

"I'm not sure what (Amazon does) will really affect us", he said. "When you look at YouTube having a billion active users and a billion hours every day". "At that point, Netflix might disrupt itself again, as it's done throughout its history with innovations such as DVDs by mail, subscription monetization, digital streaming and original content". (NASDAQ:NFLX) fell 2.64% on Tuesday following the company's latest earnings report. "That is not a strategy that we think is smart for us since we believe we can earn more viewing and satisfaction from spending that money on movies and TV shows", the company said.

However, he feels that the full subscriber count for the first half of this year could end up being closer to his first-half estimate because he predicts a commanding performance in the second quarter.

Other reports by VgToday

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