Netflix revives growth as streaming TV war looms

SAN FRANSISCO: Netflix shares rallied Wednesday after its latest quarterly update showed robust subscriber growth and better-than-expected profits ahead of a major escalation in the streaming television war.

Netflix reported a net income of $665 million in the recently-ended quarter, jumping up from $403 million in the same period last year and topping most analyst forecasts.

Revenue and subscriber growth, however, came in just shy of market consensus, with the California-based company bringing in $5.25 billion and adding 6.8 million subscribers to reach a total of 158.3 million.

Netflix says it will not join Apple TV service

Netflix shares climbed more than nine per cent after-market trades.

But eMarketer analyst Eric Haggstrom said the latest report includes signs of trouble ahead for the streaming television market leader, which fell short of its subscriber targets.

"The fourth quarter represents a completely new ballgame for Netflix as Disney+ and Apple TV+ will compete not just for subscribers, but for hit shows as well," Haggstrom said.



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

The Walt Disney Company and Apple are both set to launch streaming rivals in November, with more services on the horizon.