Netflix's solid 4Q eclipsed by forecast for slowing growth
SAN FRANCISCO — Netflix’s video streaming service added more subscribers than ever during the crucial holiday season, but the company signaled its growth is slowing in the U.S. as it begins to roll out double-digit price increases in its biggest market.
The disappointing forecast issued Thursday for the first three months of the new year overshadowed a solid earnings report covering the final quarter of last year.
Netflix ended December with 139.3 million paid subscribers, according to FactSet. Of that total, 58.5 million were in the U.S.
Management predicted the company will gain another 8.9 million subscribers from January to March, but only 1.6 million are expected in the U.S. That is down substantially from an increase of 2.3 million at the same time last year.
That downturn in the U.S. raised alarms because Netflix is starting to raise its prices in the country by 13 to 18 percent this quarter, a move that the company is making to help pay for its rising programming costs as it competes for exclusive series and films against Amazon, Hulu, AT&T and Apple.
