This March 19, 2018, file photo shows the Netflix app on an iPad in Baltimore. Netflix reports financial results Tuesday, April 16, 2019. (AP Photo/Patrick Semansky, File)

Netflix adds 9.6M subscribers in 1Q as competition heats up

Netflix expects to add another 5 million subscribers during the current quarter ending June

Netflix kicked off the year with the biggest subscriber gains in the history of its video-streaming service, but it still managed to disappoint investors by forecasting a springtime slowdown.

The strong first-quarter performance coincided with Netflix’s biggest U.S. price increases and emerging streaming challenges from Walt Disney and Apple, two of the world’s most popular brands.

READ MORE: Campaign calling for regulation of Facebook, Netflix launches in B.C.

The video service added 9.6 million subscribers worldwide during the first quarter of 2019, topping the projections of both Netflix’s own management and Wall Street analysts. It’s the most subscribers that Netflix has gained during any three-month stretch since the Los Gatos, California, company unveiled its streaming service 12 years ago.

The surge announced Tuesday left Netflix with nearly 149 million subscribers through March.

Netflix expects to add another 5 million subscribers during the current quarter ending June, but that projection fell well below analysts’ forecast. It would also represent a decline from the 5.9 million customers that the service picked up during the same period last year.

Netflix’s stock dipped 1% in extended trading to $355.85 after the numbers came out.

In a discussion streamed on video, Netflix CEO Reed Hastings likened the past quarter to a “perfect clean shot” down the middle of a golf course’s fairway while drawing comparisons to Tiger Woods’ victory in the Masters tournament.

Netflix tested the bounds of its popularity with a recent a recent price hike that raised the cost of its most popular plan to $13 a month, a $2 increase. New U.S. subscribers had to start paying the higher price in January, but it only recently started to hit existing customers.

The company said it doesn’t expect the price increase to trigger significant cancellations, though its second-quarter forecast implies otherwise. It expects to add just 300,000 U.S. subscribers from April through June, down from 700,000 at the same time last year.

Competition facing Netflix will heat up toward the end of this year when both Disney and Apple plan to start selling their own video-streaming services backed by big budgets.

Disney’s offering, due out in November, could be a bigger threat because it will feature a library of classic films supplemented with original programming cooked up by a company with a proven record of churning out crowd-pleasing entertainment. What’s more, the service — called Disney Plus — initially will cost just $7 per month.

Apple hasn’t disclosed the pricing of its service, which will include programs featuring renowned stars such as Oprah Winfrey, Jennifer Anniston and Jason Momoa, nor a specific date for its debut.

“There’s a ton of competition out there, and Disney and Apple add a little bit more but frankly, I doubt it will be material,” Hastings said.

Besides the good news on subscribers, Netflix’s first-quarter profit of $344 million rose 19% from the same time last year; it included a $58 million gain from currency adjustments. The company earned 76 cents per share during the first quarter, 18 cents above the estimate among analysts polled by FactSet.

Netflix’s revenue climbed 22% to $4.5 billion.

But the company continues to spend more cash than it is bringing in as it pours money into a lineup of TV series and films that has been attracting more subscribers. The company burned through another $460 million in the quarter and expects its negative cash flow this year to exceed last year’s total of a negative $3.5 billion.

Michael Liedtke, The Associated Press

Like us on Facebook and follow us on Twitter

Just Posted

What you need to know to vote in Canada’s federal election

Voting guide for Terrace, Kitimat up to Telegraph Creek

B.C. seniors advocate touring Northwest B.C.

Seniors advocate Isobel Mackenzie will be visiting Terrace, Kitimat and New Aiyansh Oct.15-17

Former Terracite Mathew Fee finishes cross-Canada trip on BMX bike

Fee biked more than 7,000 kilometres to raise awareness about addiction treatment

Terrace Search and Rescue headquarters gets $100K boost from Prince Rupert Port Authority

Investment to help grow regional response capacity in Northwest B.C.

Metlakatla, Lax Kw’alaams, Nisga’a and Haisla commit to fight climate change internationally

First Nations launch Northwest Coast First Nations Collaborative Climate Initiative

VIDEO: Langley woman’s security camera records its own theft

Langley family discovers early morning grab was recorded

EDITORIAL: Is researched, reasoned journalism the next endangered species?

#Newspapersmatter now more than ever: “In print that privacy is yours to keep”

Canadian Snowbirds plane crashes before air show in Atlanta

Pilot lands safely after ejecting from jet

Share crash data, private insurers tell David Eby, ICBC

B.C. monopoly makes drivers retrieve their own records

B.C. VIEWS: Wolf kill, not backcountry bans, saving caribou

B.C.’s largest herds turn the corner from extinction

Pearson nets shootout winner as Canucks clip Flyers 3-2

Vancouver picks up second straight home win

Map on Elections Canada website sends Nanaimo-Ladysmith voters to landfill

Address for polling station correct, but Google Map address differs

BC Children’s Hospital launches 2 new virtual care sites bringing total to 19 across province

Provincial initiative allows pediatric patients to see health specialists through video

Most Read