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

Forestry Ink: Part 2 – History of 1950 Chinchaga firestorm

Columnist Jim Hilton writes about what was learned from the 1950 wildfire

Celebrating Filipino heritage in Quesnel

The Filipino Canadian Community of Quesnel hosted a Filipino Heritage Month Celebration on June 15

Quesnel’s OAPO celebrates 60 years

Columnist Ginnie Dunn Webb writes about the organization’s history

Quesnel Sealions start season strong

Many swimmers earned best times at Mackenzie meet

North Cariboo Christian School hopes to expand track and field meet

Five schools from Quesnel and Williams Lake took part this year

Protesters rally in Victoria over newly approved Trans Mountain pipeline

The Still No Consent! No Trans Mountain! 20 kilometre march will end at Island View Beach

Wildfire burning in coastal forest

A fire beside the Sea to Sky Highway is burning up a steep slope

PHOTOS: Event marks one year since soccer team rescued from Thai cave

Nine players and coach took part in marathon and bike event to help improve conditions at cave

Rock climber dies after fall at Stawamus Chief in Squamish

The man had fallen about 30 metres while climbing in the Grand Wall area

Five B.C. students taken to hospital after playing with vaping device

School district said students were taken to hospital ‘out of an abundance of caution’

Being a pot dealer is not what it used to be

Sunday Big Read: the business of selling marijuana in B.C. is a slow bureaucratic slog

VIDEO: Two more pride flags have been stolen from Langley woman

Lisa Ebenal was “angry” and “fed up” after the latest theft. Then people started showing suppport

B.C. couple who has raised 58 children turns to community amid cancer diagnosis

Family who raised, fostered and adopted many kids hoping to gain some precious together time to fight cancer

Canucks acquire forward J.T. Miller from Lightning

J.T. Miller, 26, had 13 goals and 34 assists for the Lightning last season

Most Read