Netflix in Q3 Had 6.96 Million Net Subscriber Adds, Outperforming Forecasts

Netflix in Q3 outperformed its subscription forecasts, said the company's quarterly shareholder letter Tuesday. The service had 6.96 million net subscriber additions, above the 5 million it forecast in July. It added 1.09 million U.S. subscribers compared with the 650,000 forecast. Globally, it added 5.87 million, vs. an expected 4.35 million. In Q2, Netflix missed targets (see 1807160066). “As internet entertainment grows, more companies see the large opportunity,” said Netflix. “Within linear TV, New Fox appears to have a great strategy, which is to focus on large simultaneous-viewing sports and news,” it said. “These content areas are not transformed by on-demand viewing and personalization in the way that TV series and movies are, so they are more resistant to the rise of the internet. Other linear networks are likely to follow this model.” After regular-hours U.S. trading, the stock rose 12 percent to $386.28 by our deadline.