Netflix Shares Tank As Subscriber Numbers Reach 69 Million

Netflix Earnings 2015 Q3
Netflix on Wednesday announced that it added 880,000 subscribers in the U.S. for the quarter, far short of the anticipated 1.15 million increase.

Netflix shares were down 6% in after-hours trading.

Netflix surpassed 69 million subscribers and exceeded its expectations in overseas markets with 2.74 million internationally.

Netflix said the sluggish U.S. growth “was driven in part by the ongoing transition to chip-based credit and debit cards,” creating an “inability to collect.”

The company was also likely hurt by the fact that 10 million homes in the United States now already utilize its service.

Netflix is forecasting an additional 1.65 million new subscribers in the U.S. in the fourth quarter of the year, when the holiday season spurs sales of new TV sets and mobile devices. In the fourth quarter of 2015 the company added 1.90 million subscribers.

The company during its financials call said, “we expect to finish 2015 at about 2014 levels,” calling it the “fourth consecutive year we’ve added about 6 million members in the U.S.”

The company also added that it hiked prices in Europe in August and that the price increase was completed “without negatively impacting growth.”

This week Netflix announced another price hike in the U.S., at the time the company said it will “improve our ability to acquire and offer high quality content, which is the number one member request.”

Chief Content Officer Ted Sarandos also revealed on Wednesday that Netflix is interested in expanding into news programming.

During the call Netflix CEO Reed Hastings asked Sarandos, “What is the likelihood we compete directly with Vice in the next two years?”

“Probably high,” Sarandos said.

While numbers could have been better, Netflix picked up 34 Primtetime Emmy Awards nominations this year. Only one award was collected, when “Orange Is the New Black” star Uzo Aduba won in the Outstanding Supporting Actress in a Drama Series category.

Net up for Netflix will be the premiere of its motion picture “Beasts of No Nation,” in theaters on Friday.

The film will be distributed in both theaters and on Netflix simultaneously. It holds a 91% score on review site Rotten Tomatoes and is catching Oscar buzz for its star Idris Elba.