Netflix Earnings Plunge -- As Does Its Stock

0
0
Subscribe to Disney alerts

Netflix, which continues to show ambivalence in support of its original DVD-by-mail operation, reported an 88-percent drop in third-quarter net income Tuesday, triggering another sell-off of shares by investors. At mid-morning Netflix shares were down nearly 15 percent to 58.55 on the Nasdaq. The company added 1.7 million subscriptions overall in the quarter, including 1.16 million for its streaming-video service. But its churn rate -- the number of new subscribers compared to the number of departing ones -- turned out to be higher than expected. It lost 634,000 DVD-by-mail subscribers. At the beginning of the year, Netflix chief Reed Hastings had set a goal to add 7 million streaming subscribers by year's end. But through the first nine months, it has added 3.43 million. In a conference call with analysts on Tuesday, Hastings said that he will try to make direct licensing deals with Disney, Universal, and Sony when those studios' current agreements expire within the next 2-3 years. Not being able to offer recent movies from those studios for its streaming service following the expiration of its deal with Starz has not appreciably harmed the service, CFO David Wells maintained. He said that even in the company's DVD-by-mail business, only about a third of its shipments represent new releases. I think subscribers just want something good to watch and are less engaged in the freshness of the content, he said.



Contactmusic

Tags: Disney - Sony

0
0
Subscribe to Disney alerts
Advertisement

More Disney

"Rife With Death And Destruction", Children's Films Contain Twice As Many Deaths As Adult Horror Movies

What could potentially be more traumatising for a child, a gory horror flick or an animated adventure featuring songs and talking animals? Well surprisingly it...

Rene Auberjonois - Les Poissons (From "The Little Mermaid") Video

In a scene from Disney's Oscar winning 1989 movie 'The Little Mermaid', Rene Auberjonois performs 'Les Poissons'....

Jodi Benson - Part of Your World (From "The Little Mermaid") Video

In a scene from Disney's Oscar winning 1989 movie 'The Little Mermaid', Jodi Benson performs 'Part Of Your World'....

'Frozen Fever' Short To Screen Before Disney's 'Cinderella' In March 2015

What better way to encourage cinema-goers to see the forthcoming live-action 'Cinderella' movie, than the promise of more 'Frozen'? Disney announces short film 'Frozen Fever'...

Advertisement

'Frozen' Sequel Will Be Made, According To Star Idina Menzel

Although Disney hasn't made any official announcement, Fans of the animated flick 'Frozen' will be thrilled after Idina Menzel, who voiced Elsa the Snow Queen,...

Star Wars Spin-Off Movie Could Focus On Bounty Hunters

It's a big week for Star Wars. The first trailer for The Force Awakens drops on Friday (November 28, 2014), though a juicy rumor about...

Game Of Thrones Star Richard Madden Takes A Turn In Disney's Cinematic Cinderella

Robb Stark has been resurrected! But, alas Game of Thrones fans, not in the capacity that you may have all been hoping. Instead, the Scottish...

Lily James Finds Her Prince Charming In The Latest 'Cinderella' Trailer [Trailer + Pictures]

Finally, Disney has unveiled the first full trailer for Kenneth Branagh's live action rendition of one of the world's most beloved fairytales: Cinderella. And it...

Advertisement

Comments

Disney Newsletter

Subscribe to this news alert service to receive news and reviews on Disney

Unsubscribe | Unsubscribe All