Streaming Deals Like Amazon's NFL Deal Not 'Smart For Us — Netflix

Netflix: Nope, we don't want sports

The streaming company made the pledge as it revealed its worldwide business registered a profit for the first time on the back of revenues that hit the $1 billion mark.

The streaming-video giant reported first-quarter user gains that fell short of estimates because there wasn't a "House of Cards"-style hit to draw new viewers and retain others".

Netflix expects to add another 3.2 million subscribers and push its total to 101.95 million during the second quarter, but that could prove to be a conservative figure if current growth trends continue for the company.

The US-based streamer added 1.42 million US subscribers and 3.53 million internationally during the period, down on its projections of 1.5 million and 3.7 million respectively.

While new subscribers typically slow during the second quarter, Netflix has predicted 3.2 million additions worldwide for Q2 2017, nearly double the additions in Q2 2016.

Netflix has reported lower than expected subscription growth in the first quarter of 2017, a result it says was driven by delays to flagship content. This is a bit less than the company's own projections that saw it predict 5.2 million subscribers in the first quarter - 1.5 million in the US and 3.7 million internationally. Wall Street had been modelling for Netflix to earn 24 cents a share excluding items on sales of $2.76 billion.

"We've said previously subsequent seasons of show that are very popular tend to have more impact on the business than introducing brand new IP [intellectual property]", explained Netflix Chief Content Officer Ted Sarandos during the webcast.

Sequentially U.S. subscription additions of 1.42 million was far below fourth-quarter additions of 1.93 million and even further below additions of 2.23 million in the first quarter of past year.

Until recently, Netflix had competition in the U.S. only from Hulu, owned by major media companies like Disney, Comcast and Time Warner.

Netflix finished the first quarter with 98.75 million subscribers. Earlier this month Amazon secured a deal to stream NFL Thursday Night Football games.

Global streaming net additions: 3.53 million vs. firm's estimate of 3.74 million. "Because of that, the major indicators of our progress were member and revenue growth and United States contribution margins", it said.

Shares dropped by as much as 3 percent in after-hours trading as investors reacted to news that Netflix's subscriber growth has slowed. This year, Netflix thinks it will spend about $6 billion on programming.

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