Netflix, the world’s largest streaming movie service provider, posted new subscribers in the first quarter lower than market expectations due to lack of hits such as ‘House of Cards’.
On the other hand, net income increased sharply due to rate hikes.
Netflix’s subscribers in the first quarter increased to 1.4 million, including 1.42 million in the United States and 3.35 million outside the United States, but the market did not reach 5.49 million. As a result, the total number of subscribers reached 99.8 million, which is lower than the estimated 90.93 million.
Netflix is expanding the production of original content to increase new subscribers. Netflix plans to spend $ 15.3 billion on film and TV programming over the next five years.
The second quarter is expected to exceed 100 million subscribers as the number of new subscribers increases due to the release of the new season of ‘House of Cards’ and the expected release of ‘Orange Is the New Black’ and ‘Master of None’.
However, the second quarter earnings per share are expected to climb 15 cents to 23 cents. Sales in the second quarter are expected to reach $ 2.75 billion, which is not expected to reach previous projection of $ 2.76 billion.
On the other hand, 1Q earnings were more profitable than 2Q. In the first quarter, net income was $178 million, or 40 cents a share, more than four times higher than last year.
Revenue was $ 2.64 billion, up 35 percent from a year ago. Revenue has increased due to service fee hikes and expansion of service areas.