Netflix adds 3.62M subscribers in 3Q, but USA growth lags

Netflix had big gains internationally, however: 2.74 million subscribers were added internationally, exceeding expectations of 2.45 million. “We are very excited about it”.

Netflix is forecasting an additional 1.65 million new subscribers in the U.S.in the fourth quarter of the year, when the holiday season spurs sales of new TV sets and mobile devices, but in the fourth quarter last year it gained 1.90 million subscribers.

Netflix, Inc. (NASDAQ:NFLX) shares plunged by more than 14% in after-hours trading but then started to recover part of the way. “While we doubt any studio would not want more vs. less information, the reality is what you really want to know is how many subscribers would drop Netflix if “OITNB” were not there, how many would not sign-up if “OITNB” did not exist and how many would be willing to pay more for Netflix monthly because ‘OITNB” is on the service. HBO is also doing well amid the tight competition mix.

Greenfield disagreed. In a response to the op-ed, he argued on his blog that Netflix’s value comes from a healthy subscriber base, not traditional ratings.

The rapid expansion is likely to impact the bottom line at Netflix, which is leading the market for Internet-based television that can be streamed on demand.

For Netflix, the switch meant that numerous older cards on its file no longer worked as the companies gave new cards to their customers, leading to what Netflix Chief Executive Reed Hastings coined as “involuntary churn”.

The company said revenue rose to $1.74 billion from $1.64 billion a year earlier.

Beasts of No Nation, Netflix’s first feature film production about a boy soldier in an unnamed West African country, will launch on the service on Friday (US time) and in selected theatres in the United States.

Although the original programs have been a key factor in Netflix’s recent success, the licensing bills are starting to take a toll.

To help cover its expenses, Netflix last week announced it’s raising the price of its most popular video plan by a dollar to $10 per month.

Global operations again weighed on profit, as the segment’s third-quarter loss more than doubled to $US68m, compared with a loss of $US31m in the year-ago period, but better than the company’s projection of a $US77m loss. Netflix has insulated its current subscribers by guaranteeing their rates will remain unchanged until October 2015.