Netflix on Tuesday reported a third-quarter increase in paid subscribers below analyst expectations due to increased competition in the streaming market and the return of live sports to television.
According to Refinitiv, the company reported growth of 2.2 million worldwide paid subscribers in the quarter ended September 30, up from analyst estimates of 3.4 million.
Netflix has warned investors that the sudden increase in new subscriptions will decrease in the second half of the year as quarantine measures are eased.
The company’s revenue increased 22.7% to $ 6.44 billion in the third quarter, beating previous estimates of $ 6.38 billion.
Net income rose to $ 790 million, or $ 1.74 a share, this quarter from $ 665.2 million, or $ 1.47 a share, a year earlier.