(Reuters) – Netflix Inc <NFLX.O> added more-than-expected paid subscribers in the third quarter, boosted by the launch of new seasons of “Stranger Things” and “13 Reasons Why”, sending its shares up 8% in extended trading on Wednesday.
The streaming giant bounced back from a rare U.S. subscriber loss last quarter with a strong content slate that included crime series “Mindhunter”, tech fantasy thriller “Black Mirror” and Spanish crime show “La Casa de Papel” (Money Heist).
The battle for eyeballs has streaming platforms spending heavily on new content with high-profile entrants like Apple Inc <AAPL.O>, Walt Disney <DIS.N> and AT&T’s <T.N> HBO Max announcing a slate of celebrity-studded new shows to topple Netflix’s reign.
The streaming company added 6.77 million paid subscribers globally, compared with analysts’ estimates of 6.73 million, according to IBES data from Refinitiv.
Netflix’s subscriber addition of 520,000 in the United States, however, fell well below estimates of 802,524.
For the current quarter, it expects to add 7.6 million subscribers, also below expectations of 9.4 million as the new entrants up the ante in the streaming war with programming featuring Hollywood’s top talent.
Looming competition has weighed on Netflix shares, which have fallen nearly 22% since its last quarterly release in July.
Net income rose to $665 million, or $1.47 cents per share, in the reported quarter from $403 million, or 89 cents per share, a year earlier.
Total revenue rose to $5.25 billion from about $4 billion. Analysts on average had expected $5.52 billion.
(Reporting by Neha Malara in Bengaluru and Lisa Richwine in Los Angeles; Editing by Anil D’Silva)
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