Netflix Pushes International Growth, But Shares Fall as U.S. Subscriber Growth Slows

Video streaming subscription site Netflix has been aggressively launching in international markets in recent months, which seems like good business sense. But unfortunately, the company’s expansion coincides with declining subscriber growth in the US, leading to its lowest stock price in three months.Shares fell 12% to $60.12 on Tuesday, despite the fact that the site acquired 1.16 million new US streaming subscribers in the third quarter. In fact, sales actually rose 10% to $905.1 million, beating analysts projection of $904.9 million.But despite these impressive figures, the company may have an unsustainable business model. The company expects to lose $107 million to $119 million in its international expansion plans. Plus, the site still makes 90% of its revenues from its DVD mail-order business, and subscriber growth for that service is declining fast.However, CEO Reed Hastings calls the stock decrease a forecasting error, telling Bloomberg magazine, ” We’re feeling our way along as the streaming market grows.”

You May Be Interested In:


"One of The Best Conferences I Have Ever Attended."

SUBSCRIPTION SHOW 2021 explores trends impacting your business and
transforming the subscription economy (whether we want them to or not!)
and prepares your subscription business to thrive.
Join Subscription Insider Nov. 1-3, In New York or via Live Stream
LEARN MORE