![]() ![]() The company is also facing competition in streaming from HuluPlus and Amazon Prime Instant Video. The Liberty Media ( LMCA)-owned cable company has a large chunk of Disney ( DIS, Fortune 500) movies that are now no longer in Netflix's catalog. Netflix was unable to renew its contract with Starz, a key content supplier. Studios are demanding that Netflix pay them more money for their content, and not all of those negotiations are working out. Shares were down 22% at $62.52 mid-morning.Ī key concern for Netflix is how much it will have to shell out to retain its catalog of TV and film titles. The stock tumbled 13% in after-hours trading Tuesday, and continued selling off sharply into Wednesday's trading session. Shares jumped more than 10% earlier this month after Hastings revealed that subscribers watched more than 1 billion hours of video in June. Netflix's stock has been volatile this year, pushing close to $130 in February before dipping to around $62 in June. In the first quarter, the company lost $5 million, or 8 cents a share. Netflix had warned previously that it would lose money throughout 2012 as it expands internationally. ![]() For the fourth quarter, the company said it will return to the red as it launches in a new market - as yet unnamed - in Europe. In the third quarter, Netflix said it expects to post results anywhere between a loss of 10 cents a share and earnings of 14 cents a share. Netflix ( NFLX) reported $889 million in revenue for the second quarter, in line with analyst expectations, and earnings of 11 cents a share, ahead of analyst projections for five cents. In a letter to investors outlining the results, Netflix CEO Reed Hastings suggested that the Olympics could have a negative impact on viewing and sign-ups. ![]()
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