Top Story

e4m_logo.png

Home >> Digital >> Article

Netflix shares witness 15% dip post Q2'16 earnings report

21-July-2016
Font Size   16
Share
Netflix shares witness 15% dip post Q2'16 earnings report

Netflix has forecasted slower-than-expected growth in the US and international markets in the current quarter. According to media reports the company’s second quarter has ended with 83 million subscribers, adding only 160,000 US subscribers from April through June, its lowest gain in the period since splitting up its video-streaming and DVD-by-mail services five years ago.

CEO Reed Hastings blamed the dull performance on cancellations by subscribers facing price increases of as much as $2 per month, following the expiration of a two-year rate freeze. After the quarterly report its shares plummeted 15 per cent in after-hours trade.

In addition to the US slowdown, Netflix is facing steeper competition (from rivals like Google, Amazon, Apple, and HBO) in addition to an uncertain future in international markets. Reports also mentioned that net profit for the quarter was USD 41 million, up from USD 26 million a year earlier. Revenue rose to USD 2.1 billion from USD 1.6 billion.

 According to reports despite the poor performance, Netflix has said that with the increased revenue Netflix plans to invest in better content. Earlier this year, the company expanded to 130 new countries except China.

Whereas in India Netflix has completed six months and so far the only big announcement it has made was of its first original series on novelist Vikram Chandra’s ‘Sacred Games’, which will be produced in collaboration with Phantom Films. With its subscription rate on the higher side and rising competition from plethora of new players in OTT segment, the company still has a long way to go on content, technology and payment channels. 

Tags

Siddharth Kumar Tewary, Founder, Chief Creative, One Life Studios and Swastik Productions, on owning the IP on his most ambitious project 'Porus,' the risk of recovering its cost and his distribution strategy

Webscale plans to build the brand around smooth operations for the e-commerce sector and then move on to demand generation

Shriya Ghate, Business Head, Tinkle, spills the beans on the company's vision for its special line of merchandise launched to celebrate its 37th anniversary, its pricing, marketing strategies, and more

Vivek Patni, Director of Wonder Cement, on the current marketing strategies and challenges that brand owners face

Luis Fonsi, Rita Ora, Jain of Makeba fame , Dimitri Vegas, Jason Derulo, Charly Black and Dasu, J Balvin, Parineeti Chopra, Tiger & Jackie Shroff speak exclusively to the radio channel

The Film-Maker, as the host of ‘Calling Karan’, Will Be Just A Phone Call Away From Listeners Seeking Advice On Love & Relationship

The group aims to double its FMCG turnover to Rs. 1,000 crore over four years.