Netflix Shares Soar on Surprise Third Quarter Subscriptions Boom

by

netflixNetflix has reported surprisingly strong third quarter results, sending the company's share prices soaring 20 percent in late trade (via Reuters).

The streaming content company added over 50 percent more subscribers than expected, owing to original shows like Stranger Things and Narcos drawing significant numbers of new international viewers and retaining U.S. customers despite a price hike. The news led to a share price rise to $119.82 in extended trade from a close of $99.80.

The company's performance signaled a distinct turnaround from its previous quarter, which indicated largely disappointing subscription growth. Netflix said it was on course to start collecting yields on its global profits next year, even though it was increasing spending on original programming.

Netflix said it had added about 3.2 million subscribers in Q3, far higher than a 2 million average estimate. In the U.S., the company added 370,000 subscribers, also above analysts' estimate of 309,000.

Netflix has expanded into more than 130 markets worldwide, including most major countries, except China. It said on Monday it was temporarily dropping plans to launch a service in China in the near term, opting instead to license its shows for "modest" revenue.

The company plans to increase spending on original TV shows and movies from last year by $1 billion, for a total of $6 billion earmarked for 2017.

Netflix's shares have surged in the past few years, thanks to rapid growth as the company achieved a significant shift in television watching habits. However, stock was down 12.7 percent this year as investors worried about slowing growth in the U.S. market and increasing competition from the likes of HBO Now, Amazon Video, and Hulu.

Tag: Netflix

Top Rated Comments

(View all)
Avatar
53 months ago
After seeing the first episode of STRANGER THINGS at a friend's house, I immediately signed-up to watch the rest. Brilliant show, allowing the creators to utilise so much of what made 80's movies - particularly the early 80's - so memorable: tone, kids playing centre stage, special effects, (synth)music.

Well done to Netflix for seeing this show through, from beginning to end...
Score: 6 Votes (Like | Disagree)
Avatar
53 months ago

I honestly think Apple should still make a bid to buy Netflix. The could provide a special subscription deal to Apple TV owners to get everyone to want one and build that platform. No one understands new content like Netflix. A bright future for them. 1/4 of Apple's cash and they would own streaming, it would substantially help build their new Apple TV platform with everyone wanting to own one and finally they'd have a real 'new content' arm that could focus on what it does best. Apple could also help Netflix in the app department as they've no clue what they are doing.

$60B, Netflix and chill.

They'd probably make the money back over 10 years at which point Netflix would be everyone's cable cutting option and Apple would own the market.

Please no. Anything cloud-based that Apple touches turns into a turd really fast. Netflix should stay independent for as long as possible.
Score: 6 Votes (Like | Disagree)
Avatar
53 months ago

By offering a special subscription price for Apple TV. Think: $7 for ATV owners and $10 for everyone else.

Wait... so you're saying I can spend $150 to save $3. Are you my wife? Nichole is that you? If it is, I love you but this math doesn't work at home and it won't work on the internet either. Besides, we're talking about Apple. This is the same company that still sells two year old tech for full price. That recently sold an old ass monitor for $1000. You'll pay full price for the privilege of this: :apple:... and like it.

Pork chops for dinner please... LU
Score: 5 Votes (Like | Disagree)
Avatar
53 months ago

This is a great addition. One might wonder why this wasn't on the app at launch though.

But, the ATV3 version of genres is a lot better. It gives you sub-categories. Like, under horror > vampire or horror > zombies.

Good point, something my wife and I kept complaining about. We watch the ATV2 (same interface as ATV3) in our bedroom and have the ATV4 in the living room, we got frustrated a few times searching for movies on the ATV4 and wondered why they released a new product with a worse UI. Other than that the entire platform I like better because of Apps, I know have access to my personal collection via PLEX app.
Score: 1 Votes (Like | Disagree)
Avatar
53 months ago
The relatively poor network television series selection this season certainly helps them.

I find that this year has seen me at the local movie rental center more than anytime in my past.

Netflix might have been an option, but I can't afford $150 a month for Internet. Unlimited plans are expensive.
Score: 1 Votes (Like | Disagree)
Avatar
53 months ago

Good point, something my wife and I kept complaining about. We watch the ATV2 (same interface as ATV3) in our bedroom and have the ATV4 in the living room, we got frustrated a few times searching for movies on the ATV4 and wondered why they released a new product with a worse UI. Other than that the entire platform I like better because of Apps, I know have access to my personal collection via PLEX app.

I wish I could pick and choose the things about the ATV3 and 4 that I liked and have them on one device.

The ATV4 has potential, but I feel it still has a long way to go before it would fit the Apple's description of "revolutionary".
Score: 1 Votes (Like | Disagree)

Top Stories

First Impressions From New iPhone 12 and 12 Pro Owners

Thursday October 22, 2020 4:20 pm PDT by
It's already Friday, October 23, in Australia and New Zealand, which means some customers who purchased an iPhone 12 or 12 Pro already have their new devices in hand. We've seen dozens of reviews of the iPhone 12 and iPhone 12 Pro from media sites, but now first impressions from regular Apple customers are available. Image via MacRumors reader Boardiesboi New iPhone 12 and 12 Pro owners are...

Early iPhone 12 Tests Show Ceramic Shield is Stronger and More Scratch Resistant Than iPhone 11 Glass

Friday October 23, 2020 1:21 pm PDT by
Apple's new iPhone 12 models are protected by a Ceramic Shield cover glass that has nano-ceramic crystals infused right into the glass to improve durability. According to Apple, Ceramic Shield offers four times better drop protection than the glass used for the iPhone 11 models. YouTube channel MobileReviewsEh conducted some tests on the iPhone 12 using a force meter to compare its performance ...

Apple Distributing New Heated Display Removal Machine for iPhone 12 Repairs

Thursday October 22, 2020 6:20 pm PDT by
Apple is providing Genius Bars and Apple Authorized Service Providers with a new heated display removal fixture for iPhone 12 and iPhone 12 Pro repairs, according to information obtained by MacRumors from a reliable source. To open iPhone 12 models, technicians will be required to slide the device into a specialized tray, and then place the tray into the high-temperature fixture for two...

Apple VP Kaiann Drance Interview Addresses Battery Life, MagSafe, and Power Adapter Concerns

Friday October 23, 2020 3:37 am PDT by
Apple's Vice President of iPhone Marketing, Kaiann Drance, has provided a new interview to Rich DeMuro on the Rich on Tech Podcast, to discuss the iPhone 12 and iPhone 12 Pro. Although much of the interview repeated points from Apple's "Hi, Speed" event, there were a number of interesting tidbits regarding the affect of 5G on battery life, MagSafe concerns, and the lack of a power adapter in...

Teardown Video Confirms iPhone 12 and iPhone 12 Pro Use Same 2,815mAh Battery

Thursday October 22, 2020 9:47 am PDT by
With the iPhone 12 launching on Friday and in just a few hours to Australia and New Zealand, hands-on videos, teardowns, reviews, and other iPhone-related content has been coming out. A new teardown video delves into both the iPhone 12 and the 12 Pro, confirming battery life for both models and giving us a closer look at their internals. The video from Io Technology is in Chinese, but ...

Images of Supposed AirPods Diagnosis Tool Shared Online

Thursday October 22, 2020 5:24 am PDT by
Apple is reportedly rolling out a new tool to Apple service providers for testing AirPods, according to leaker known as "Fudge," who shared images of the tool on Twitter. Apple appears to be seeking to reduce unnecessary AirPods services by more accurately diagnosing the cause of a fault. Instances of a dirt-blockage, which may be difficult to ascertain visually, can apparently be...

New Photos Offer Better Look at iPhone 12 Color Options

Tuesday October 20, 2020 2:34 am PDT by
As we wait for the iPhone 12 review embargo to lift later today, more pictures are circulating of the devices in real-world lighting conditions, providing a better look at the different colors available. Leaker DuanRui has shared images on Twitter of the iPhone 12 in white, black, blue, green, and (PRODUCT)RED. The black and white colors are similar to the iPhone 11 colors, but the other...

Apple's AirTags Revealed in Newly Published Patent Applications

Thursday October 22, 2020 9:13 am PDT by
Two patent applications filed by Apple appear to depict the company's widely expected AirTags item trackers (via Patently Apple). The filings, which include a large number of images, are titled "Mounting Base for a Wirelessly Locatable Tag" and "Fastener with a Constrained Retention Ring," and describe a wirelessly locatable tag that can be used to determine the absolute location of an...

iPhone 11 Pro Outlasts iPhone 12 and 12 Pro in Extensive Battery Life Test

Friday October 23, 2020 8:36 am PDT by
Arun Maini today shared a new side-by-side iPhone battery life video test on his YouTube channel Mrwhosetheboss, timing how long the new iPhone 12 and iPhone 12 Pro models last on a single charge compared to older models, with equal brightness, settings, battery health, and usage. All of the devices are running iOS 14 without a SIM card inserted. In the test, the iPhone 11 Pro outlasted both ...

Apple Warns MagSafe Charger Can Leave Circular Imprints on Leather Cases

Friday October 23, 2020 3:23 pm PDT by
If you keep your iPhone in a leather case while charging with Apple's new MagSafe Charger, the case might show circular imprints from contact with the accessory, according to a new Apple support document published today. Apple's leather cases for the iPhone 12 and iPhone 12 Pro are not available until November 6, but a MacRumors reader has already shared a photo of a circular imprint on...