In the world of online streaming video, it’s all about “eyes on the tube” as in “number of subscribers.” Netflix Inc. (NASDAQ:
Netflix said it would add 2 million international subscribers in the recently completed quarter. Instead it added 3.2 million. The result was a 20% jump in stock prices in after-hours trading Monday.
U.S. Subscriptions Up As Well
Even in the U.S. where the company expected to add about 300,000 subscribers, it beat that prediction by adding 370,000. The year-ago quarter’s numbers were more impressive, however, when Netflix added 880,000 subscribers in the U.S.
Big Change May Be Coming
Original programming and a wealth of available material have kept Netflix on top. One area, however, has lagged behind –
Amazon and Apple Inc. (NASDAQ:
Rumor has it, however that Netflix execs might be changing their minds and a download option may soon come to Netflix.
Multi-Streaming Subscriptions Growing
Standing out from the crowd is getting harder – not just because there are more options but because
This is especially important as services like Netflix, Amazon and others add more original content. This has made self-bundling of streaming content a growing phenomenon.
Despite the good news Monday, it’s a fact that Netflix
Analysts are sending mixed signals with Pacific Crest’s Andy Hargreaves predicting accelerated subscription growth in Q4 while others such as Deutsche Bank’s Bryan Kraft noting, “With penetration exceeding 50% of U.S. broadband homes, the incremental subscriber is more difficult to attract.”
According to Wall Street Pit, of 40 analysts covering Netflix, 21 rate it a “Buy,” 12 recommend “Hold” and the balance say “Sell.”