BUSINESS

Netflix rate hikes slow takeup

TAGS: Stocks, Business

Shares in Netflix fell 11 percent in early trade on Thursday, as investors worried over lower-than-expected global growth and signs of trouble in its US base.

The company added just 2.83 million international paid streaming subscribers, compared with street expectations of 4.8 million.

Brokers Cowen & Co calculated it had missed expectations for second-quarter subscriber numbers three times in the last four years.

“The subscriber miss wasn’t unprecedented, though the international miss magnitude was greater than normal,” RBC Capital Markets analysts said. “But Q2 results do highlight the importance of a strong content slate and at least raise the question of whether NFLX needs to be more restrained with price increase pacing.”

Netflix, which has 151.6 million customers, raised prices in Britain, Switzerland, Greece and Western Europe in the quarter. [Reuters]

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