SAN FRANCISCO: Netflix shares plunged in after-hours trade Wednesday after its quarterly update showed weaker-than-expected subscriber growth for the streaming television sector leader.
Netflix said it added 2.7 million new subscribers worldwide in the April-June period, well below expectations, as the sector prepared for offerings from rival groups including Walt Disney, Apple and others.
Shares in Netflix skidded 10.3 percent in after-market trade after the results, which showed revenues and profits largely in line with analyst forecasts.
Netflix said in its letter to investors that it still sees long-term growth on target, dismissing concerns that consumers were gravitating to rivals.
“We don’t believe competition was a factor since there wasn’t a material change in the competitive landscape during the second quarter, and competitive intensity and our penetration is varied across regions,” the letter said. – AFP