Netflix grows but disappoints the market
Netflix increased second-quarter revenue by 13 percent to 12.6 billion dollars and raised its profit. A more cautious outlook than expected nonetheless sent the stock lower. Live content is becoming ever more important for the streaming service.
The New York Times reports that the quarterly figures largely matched Wall Street's expectations, while the Financial Times cites the weakest projected revenue growth in three years as the reason for the share-price decline. The FAZ highlights that Netflix failed to convince the market despite rising profits and will in future disclose the popularity of its films and series only once a year. The business papers agree that while the company is growing solidly, investors' high expectations are harder to meet. The ad-supported subscription and, increasingly, live broadcasts are seen as growth drivers, through which Netflix aims to tap new audiences and advertising revenue.
