Tomahawk, WI 10/16/2014 (Basicsmedia) – Netflix, Inc. (NASDAQ:NFLX) might finally be showing some signs of weakness in the video-streaming business after recording a slowdown in the total number of subscribers in the third-quarter. CEO, Reed Hastings, during an interview on CNBC, admitted that an increase in prices for subscription packages might have played a role in the company registering minimal growth in the quarter.
Slow growth in the quarter has made investors rethink Netflix, Inc. (NASDAQ:NFLX)’s growth potential as many were of the opinion the company could get away even after increasing prices.
“We have had such great growth over the years we get addicted sometimes to beating our own numbers. For the last three-quarters, we underestimated our growth and over performed; this quarter it was the other side, we estimated too high we came in below,” said Mr. Hastings.
Slowing business at Netflix, Inc. (NASDAQ:NFLX) is something that shareholders will not want to hear especially after the company’s main rival HBO announced plans to tap into the growing internet-only package business as of next year. Slow growth in subscriptions is not good for business as it could considerably affect the company’s ability to pay for popular content such as House of cards and Orange.
Netflix, Inc. (NASDAQ:NFLX) was still able to add 3 million new subscribers during the quarter translating to a million a month. The gains were still low as Wall Street had expected 3.7 million. Hastings remains confident about the company’s prospects in Q4 with further growth expected on the internet-TV segment.
“We are expecting to add 4 million in Q4. So, the big picture about people moving to internet TV is as strong as ever, and you heard that was the great interesting news from HBO,” said Mr. Hastings.
Netflix, Inc. (NASDAQ:NFLX) is facing fiercer completion in the streaming business especially from Amazon, which is slowly gaining traction of the space. One of the major positive from the quarter is that the company added an additional 2 million subscribers from international markets after debuting in France and Germany.