Netflix shares dive as growth of subscribers lack brand, Consumer

March July 17 2018 – 7:05 AM

[SAN FRANCISCO] The Netflix stock plunged on Monday after the first streaming TV service said subscriber growth was below expectations in the last quarter.

According to a letter published at the same time as profit figures, Netflix sales fell 14.11% to $ 343.97 US in the aftermarket. , in a setback to the television behemoth operating in some 190 markets around the world.

"We had a strong Q2 but not stellar (second quarter)," said Netflix in a letter to shareholders

"Earnings, Margins"

The Silicon Valley-based company said she was starting to "artistically lead" in certain categories with her original content, earning enough Emmy nominations this year to break a 17-year-old Netflix said to have made a profit of 384 million US dollars on a 3-digit business , US $ 9 billion in the last quarter, compared to US $ 66 million for a business turnover of US $ 2.8 billion over the same period. expected Netflix earnings to be slightly higher.

"After four consecutive quarters of exceeding expectations and analysts' expectations of key indicators such as revenues, profits and subscribers, Netflix disappoints "This is not totally surprising given the growing competition in the video streaming market, where Amazon, Hulu, HBO and others are earning a share of the video's money." Subscription at the expense of Netflix. He adds.

Competition in the streaming TV market includes YouTube, a platform under the Google Alphabet umbrella, and Disney entertainment, with AT & T

. Ubscriber's forecast is lacking as a "speed bump", rather than starting a downtrend, thinking that the "content arms race continues to be an important tailwind" for the company

Street believes we would be buyers of Netflix on this weakness, "said Daniel Ives, research director of GBH Insights, in a note to investors

Netflix has spent billions of dollars in original content, supporting movies or creator emissions.

"We continue to increase our production of non-English originals," said Netflix in his letter.

"Our international originals may be important Netflix added that while the traditional film industry is focusing more and more on superheroes and sequels, on-demand service can serve a variety of tastes.

AFP