Netflix performed poorly in the US market regardless of crossing the 70 million viewers all around the world
Netflix Inc. is the online streaming service giant in the United States and the whole world. The company has now expanded its business in more than 80 countries and is aiming to cover all parts of the world within the next two to three years, according to its vigorous expansion plans. There is no harm in saying that the streaming service is growing immensely all around the world. It recently added Cambodia to its Asia expansion list where other countries are awaiting the launched by 2016.
The online video content service provider is the biggest in the world however it failed to keep pace with the expectations of analysts and sustain its business in his own country. According to sources, the company added more 880,000 viewers on its platform in the United States. But the number fell very short of the expected 1.15 million increases by this time. Let alone this year, the company did not even manage to surpass the number when opposed to the same quarter last year. It reported a massive 980,000 subscribers added in the third quarter of FY14..
Furthermore, Netflix stocks were down by around 6 percent in the after hour trading market. Overall, the company did a tremendous but was unable to sustain its market position in the United States. The streaming giant easily crossed 70 million viewers as well as surpassed the expected subscribers’ increase in the foreign markets where it added 2.74 million more customers.
The company blamed the bank for its sluggish growth in the United States. Netflix reported, “The sluggish U.S. growth was driven in part by the ongoing transition to chip-based credit and debit cards, creating an inability to bring together.”
It is getting difficult for Netflix to find a way now to boost its user growth in the United States as most of the people, tens and millions of homes are already subscribed to Netflix or other cable or online TV service.
The streaming giant has already expected to add a massive 1.65 million viewers within the United States by the end of fourth quarters of the 2015 fiscal year. The company officials have told the investors that they always want to finish this year on a high and they want it to finish as the company ended its tremendous 2014 year. It said in its periodical shareholder letter, “we expect to finish 2015 at about 2014 levels.” Netflix is now focused to look ahead to the last quarter of the 2015 fiscal year.
Netflix stock news reveals that the stock was down 8.29% to $101.29 at market close on Thursday.