Netflix shares on track for worst day in five months

That brings Netflix's total subscriber base about 1.2 million shy of the 100 million mark. They had gained 15 percent this year through April 13.

Netflix needs to add millions of subscribers every quarter to help pay for the billions of dollars the company spends making TV shows and movies or licensing programs from others.

"Everybody watches TV and almost everybody has the internet, so I don't see anything that's going to stop Netflix from getting to most people in the United States and then eventually hopefully most people around the world", Hastings said. Mostly to make its movies eligible for Oscar nominations, Netflix has had to partner with luxury theaters like iPic on limited theatrical releases instead.

The Los Gatos, California firm presently has a market value of around $63 billion.

Netflix came up short of its subscriber forecasts for this quarter, but the SVOD says the slower growth early in 2017 isn't cause for concern.

Responding to the emergence of "virtual MVPDs" like Sling, YouTube TV and Hulu's upcoming OTT service, the shareholder letter noted: "We believe VMVPDs will likely be more directly competitive to existing MVPD services since they offer a subset of the same channels at $30 to $60 per month, and may appeal to a segment of the population that doesn't subscribe to a pay-TV bundle". "Considering the new seasons of House of Cards and Orange is the New Black are scheduled for release later this quarter as well, we believe guidance could prove conservative".

The trend has confronted Netflix with more competition in the battle for household entertainment budgets. Netflix's subscriptions range from $8 to $12 per month, with the most popular option at $10.

"Since the launch of The Ridiculous 6, Netflix members have spent more than half a billion hours enjoying the films of Adam Sandler", reads the earnings report. Netflix had previously frozen prices for millions of subscribers at 2014 levels.

Netflix reported first-quarter customer numbers slightly below expectations, but said it still sees "gigantic" potential for global growth.

Total revenues jumped to Dollars 2.637 billion from 1.958 billion the year before and against the company's guidance of 2.5 billion.

  • Todd Kelly