Netflix Nears 100 Million Subscribers, But Q1 Gains Fall Short of Expectations

Netflix combined fewer subscribers than approaching for a initial 3 months of 2017, while a No. 1 subscription-video provider pronounced it will transcend a 100-million symbol this entrance weekend.

For a initial quarter, Netflix combined 1.42 million U.S. subs and 3.53 million overseas. Previously the association had projected net gains of 1.5 million in a U.S. and 3.7 million internationally for period.

On a subscriber-growth miss, a company’s batch fell 3% in after-hours trade before resilient a bit (but still trade subsequent Monday’s shutting price). Shares sealed adult 3% on Monday during $147.25 per share. [UPDATE: Around 5 p.m. ET, Netflix shares crossed into certain domain in after-hours trading.]

As of a finish of March, Netflix had 98.75 million tellurian members. The association pronounced it expects to transcend a 100 million symbol this entrance weekend. “We sojourn impossibly vehement about a event in front of us to build a truly tellurian and durable internet TV business,” Netflix pronounced in a minute to shareholders.

In 2017, a association skeleton to spend some-more than $1 billion selling a content, Netflix pronounced in a shareholder letter. That’s some-more than it spent altogether on selling in 2016 ($991 million). As partial of a selling efforts this year, a association will deposit some-more in programmatic ads, “with a aim of improving a ability to do individualized selling during scale and to broach a right ad to a right chairman during a right time,” Netflix said.

Netflix reported income of $2.64 billion for Q1, in line with researcher forecasts, and gain of 40 cents per share (versus Wall Street estimates of EPS of 38 cents).

The formula come after Netflix combined 7.05 million new subscribers in a fourth entertain of 2016, environment a quarterly record for net subscriber adds. For a second entertain — historically a soothing duration for Netflix — a association projects 600,000 U.S. net adds and 2.6 million internationally.

On a originals front, Netflix highlighted several releases during a quarter: “A Series of Unfortunate Events,” formed on a Lemony Snicket book series; “Santa Clarita Diet,” a zombie comedy starring Drew Barrymore and Timothy Olyphant; “Ultimate Beastmaster,” a initial existence foe uncover in that athletes competition to finish a 600-foot barrier course; and “Marvel’s Iron Fist,” a fourth installment in a street-hero array from a Disney-owned studio.

Netflix pronounced “Dave Chappelle: Collection 1,” a initial of dual strange stand-up specials from a comedian, was a most-viewed comedy special ever. Its spate of comedy deals of late have enclosed pacts Chris Rock, Jerry Seinfeld, Amy Schumer, Louis C.K., Sarah Silverman and Tracy Morgan. “We have also stepped adult a investment in stand-up comedy that we trust can assistance grow a business, like a strange series,” a company said.

Netflix also called out a prolongation of a understanding with Adam Sandler for an additional 4 films, noting that subscribers have streamed some-more than 500 million hours of Sandler’s films on a use given a recover of “The Ridiculous 6” in late 2015. The association final month hired Scott Stuber, before co-president of prolongation during Universal Pictures, to head a strange films division.

Meanwhile, opposition Amazon snared streaming rights to a NFL’s “Thursday Night Football” games for subsequent season. Netflix told investors in a minute that posterior live sports “is not a plan that we consider is intelligent for us given we trust we can acquire some-more observation and compensation from spending that income on cinema and TV shows.”

Pictured above: Netflix strange array “Marvel’s Iron Fist,” that premiered Mar 17.

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