Netflix Q3 earnings exceed estimates, despite disappointing US subscriber growth

Netflix reported 500,000 paid net additions of in the United States, falling far short of its forecast of 800,000.

Conversely, international growth exceeded expectations, with 6.3 million net adds compared to a forecast of 6.2 million.

U.S. subscriber growth looks particularly weak when you compare it to 2018 - Netflix has only seen 2.1 million net additions domestically in the first nine months of 2019, compared to 4.1 million in the same period of 2018.

"While we had previously expected 2019 paid net adds to be up year over year, our current forecast reflects several factors including less precision in our ability to forecast the impact of our Q4 content slate, which consists of several new big IP launches, the minor elevated churn in response to some price changes, and new forthcoming competition," Netflix says.

EMarketer analyst Eric Haggstrom said in a statement that "The fact that Netflix has shown disappointing growth without the new competition present, is a negative omen for Netflix in 2020 and beyond."

"In our view, the likely outcome from the launch of these new services will be to accelerate the shift from linear TV to on demand consumption of entertainment," Netflix says.

"Our goal is to have the quality of our slate rival the ambition of its scope," Netflix says.

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