Netflix bounces back after second-quarter blip
The streaming service is boosted by new seasons of popular shows Stranger Things and 13 Reasons Why.
Thursday 17 October 2019 10:12, UK
Netflix has reported a gain of 6.77 million paying subscribers in the third quarter, slightly above analysts' expectations.
The streaming service was boosted by new seasons of popular shows Stranger Things and 13 Reasons Why during the quarter, which ran from July to September.
The number of new US-based subscribers was just 520,000, well below expectations of 802,524.
In the previous quarter, Netflix reported a loss of US streaming customers for the first time in eight years, also missing targets for overseas subscribers, so this quarter's figures represent a positive rebound for the company.
Netflix shares rose 9.2% in after-hours trading on Wednesday to $312.69 (£244.96).
The streaming industry is becoming more competitive, with new entrants Apple Inc, Walt Disney and AT&T's HBO Max announcing a number of celebrity-backed shows recently.
Disney+ enters the market next month, with an offering including its popular Pixar films, all the Star Wars films and every episode of The Simpsons.
Apple Inc will also debut in November followed by AT&T Inc's HBO Max, and a new offering from Comcast Corp next year.
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Netflix, the world's largest video streaming service, insisted the competition would help by increasing interest in the streaming market.
In a letter to investors, the company said: "In our view, the likely outcome from the launch of these new services will be to accelerate the shift from linear TV to on demand consumption of entertainment."
For the third quarter, Netflix's net income rose to $665m (£520m), from $403m (£315m) a year earlier. Total revenue rose to $5.25bn (£4.11bn) from about $4bn (£3.13bn).