Netflix shares tumble 7% in after-hours trading after it reported Third-quarter results

Netflix shares tumble 7% in after-hours trading after it reported Third-quarter results

After Netflix reported its third-quarter results, its shares went down by 7% in after-hours trading. The company has included only 880,000 US streaming subscribers in the quarter, which seems to be a cause of the investor shock. The number is down from 980,000 in the same period last year, and below its forecast of 1.15 million (pdf).

Netflix CEO Reed Hastings wrote a letter to investors in which he partially blamed America’s latest switch to chip-enabled credit cards. The credit card companies give new cards to their customers due to which some issue new numbers also. In case people don’t remember to update their credit card number with Netflix, or miss it, they can’t pay their bill, becoming what Hastings said is ‘involuntary churn’. Netflix is among the first US companies to report third-quarter results.

Besides this, there are a number of other things that are more annoying about getting a new credit card or replacing stolen card than updating recurring subscriptions to the new number. There are many cases wherein people forget to update their Netflix account. Whereas, some customers, possibly, on the fence to keep their Netflix subscriptions faced the annoyance of changing their card number, using it as an excuse for to halt paying altogether.

According to a quick survey of the Quartz newsroom, a few people got their numbers changed in the process of getting their chip-based cards, whereas others got to keep the same number.

Popular Stories

Overall childhood ‘asthma epidemic’ levels off in U.S.

The overall ‘asthma epidemic’ among children has... Read More

‘UC Quits’ Working to Help California Smokers Get Rid Of Smoking

As New Year is approaching, people have already... Read More

Scientists begin Stem Cell research to find cure for Alzheimer’s

Alzheimer’s disease, the commonest cause of... Read More

New House Bill to Restrict First-Time Opioid Prescriptions

Cases of opioid abuse have been increasing and... Read More

Comcast installs DOCSIS 3.1 modem on customer-facing network in Philadelphia

In an announcement made on December 22, cable giant... Read More