On Monday, Netflix announced their quarterly numbers for the first quarter 2017. Netflix reveals that they suffered from lackluster subscriber addition numbers.
Netflix reported earning $2.64 billion in the first quarter after the bell on Monday. The company also posted earnings of $0.40 per share, which is ahead of the previous estimate for the enterprise. However, it is important to note that the company missed their subscriber projections. The company added 1.42 million domestic customers. That number is approximately 800,000 less than their previous estimate. Moreover, Netflix’s numbers will also lower internationally with 3.3 million users signing up. In comparison to the 3.65 million users, they expected to receive.
Following the news shares of Netflix job as much as 3% in after-hours trading as investors reacted to the news that on Monday shares of Netflix close that $140.24 a share which is up 3%. Subscriber growth for the company has slowed down.
Netflix has been rapidly expanding as a global entertainment company. The decision to expand internationally came as the business in the United States slowed down.
This news comes after Netflix plans to move their filming location to Los Angeles. Currently, Netflix is spending $6 billion in TV and films. But the company reportedly explained that they are no one are going to chase the film tax credits and instead plan on moving all of their productions to California CEO explains. And in recent interview, Netflix is the reasoning behind the decision. “I personally believe instead of investing in tax incentives that we should invest in infrastructure,” Sarandos said. Sarandos added it “is very tough on families and eventually it grinds on the talent.”
“When you think about productions chasing tax credits all over the world, it puts the onus on the cast and crew who have to travel. You move to Los Angeles, or you grew up in L.A., because you wanted to be in show business — and then you have to move to New Orleans six or eight months a year,” Netflix’s CEO explained.