Business

Netflix slashes its forecast for subscriber gains

Netflix shares fell $11.13, or 16.3 percent, to $57.09 in after-hours trading.

Justin Sullivan/Getty Images/File

Netflix shares fell $11.13, or 16.3 percent, to $57.09 in after-hours trading.

LOS ANGELES — Netflix slashed its prediction for how many US video-streaming subscribers it would add this year after subpar third-quarter results, causing a sharp sell-off in its stock in after-hours trading.

The Los Gatos, Calif.-based company said it added 1.2 million net streaming subscribers in the United States in the three months through September, which was on the low end of its forecast.

Advertisement

The disappointing figure caused Netflix to cut its estimate for full-year US streaming subscriber additions to between 4.7 million and 5.4 million. Previously, Netflix predicted it would gain as many as 7 million domestic streaming subscribers.

Growing streaming subscribers in the United States is crucial to Netflix because the number of DVD-by-mail subscribers continues to fall and its losses internationally are mounting. Netflix also needs more subscribers because it is sticking to its price of $8-a-month for unlimited video streaming.

Get Talking Points in your inbox:
An afternoon recap of the day’s most important business news, delivered weekdays.
Thank you for signing up! Sign up for more newsletters here

CEO Reed Hastings brushed off the subscriber miss, even as Netflix shares fell $11.13, or 16.3 percent, to $57.09 in after-hours trading.

‘‘In perfect hindsight, it was not the best choice to put out that high a goal,’’ he said in an interview with the Associated Press.

Associated Press

Loading comments...
Real journalists. Real journalism. Subscribe to The Boston Globe today.
We hope you've enjoyed your free articles.
Continue reading by subscribing to Globe.com for just 99¢.
 Already a member? Log in Home
Subscriber Log In

We hope you've enjoyed your 5 free articles'

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com