Netflix Stock Drops Sharply in Early Thursday Trading After Quarterly Subscriber Shortfall
— failed to drive growth. It's not that the shows weren't watched by subscribers — the streamer noted that Adam Sandler'sis the most-watched of his Netflix originals to date, with over 73 million households tuning in during its first four weeks — but that they didn't entice new subscribers to hand over their credit card information.
"There was no one thing" that caused the miss, CEO Reed Hastings said in a Q&A taped after the earnings release. He chalked it up, in part, to bad projections. , and Netflix said the first two weeks have been "strong." It is projecting that it will add 7 million new subscribers during the third quarter. 's final season will also contribute to the second half of the year.
After years of selling their biggest hits to Netflix, Hollywood studios have cooled on the company. Disney, NBCUniversal and WarnerMedia are all expected to launch their own streaming services within the next year. To build up the value of their offerings, they are reviving well-known IP for new projects and reserving library hits from Netflix.
. "We don’t have material viewing concentration as even our largest titles account for only a low single-digit percentage of streaming hours," the company said. "From what we’ve seen in the past when we drop strong catalog content , our members shift over to enjoying our other great content." Hastings also noted in the Q&A that he believes the company is well positioned to weather the coming competitive market. When asked how he felt about the term "streaming wars" being used to describe the influx of new products, the exec said it draws more attention to the space and "because of that, consumers shift more quickly from linear TV to streaming TV."
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