Business

Netflix shares slide after weak growth

SAN FRANCISCO: Netflix shares plunged in after-hours trade on 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 to June period, well below expectations, as the sector prepared for offerings from rival groups including Walt Disney, Apple and others.

Shares in Netflix skidded 11.97 per cent to US$319.07 (S$434.29) in after-market trade following the results, which showed revenues and profits largely in line with analyst forecasts.

Netflix said that it still sees long-term growth on target, dismissing concerns that consumers were gravitating to rivals.

"I think our position is excellent," Netflix chief executive Reed Hastings said in an earnings presentation.

Netflix, known for its original shows such as The Crown and Orange is the New Black, said the latest shows did not attract as many subscribers.

That, along with hikes in the price of subscriptions in some regions, appeared to dampen growth, Mr Hastings and other top executives said.

"Netflix has a difficult road ahead with looming competition and the removal of popular content, but a strong content schedule in Q3 should draw many former subscribers back in," said eMarketer forecasting analyst Eric Haggstrom. - AFP

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