Netflix's Subscriber Growth Stalls

Netflix shares plunged by more than 14% on Monday, after the firm reported disappointing subscriber growth. While the entertainment service added 5.2 million subscribers last quarter, it forecasted a growth of 6.2 million. BBC reports:
Investors are worried about Netflix's growth potential in the face of increased competition from tech giants such as Apple, YouTube and Amazon, as well as traditional firms, which have started to invest more in online streaming. Disney, for example, plans to launch its own streaming service and stop licensing some of its material to Netflix.
In a letter to investors, Netflix called it a "strong but not stellar quarter," ending with about 130 million subscribers globally. The firm added just 670,000 subscribers in the U.S. -- far short of the more than one million it added in the second quarter of 2017. It added 4.5 million subscribers internationally, fewer than the two most recent quarters but up 8% year-on-year. However, it said its finances were strong. The company reported $3.9 billion in quarterly revenue, up 40% compared to the second quarter of 2017. Profits totaled $384.3 million, almost six times the figure during the same period a year ago.

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