Netflix Inc. is set to report earnings Monday for the third quarter of 2016. As competition heats up from the likes of HBO and Amazon (and Netflix continues to “ungrandfather” some users from a lower pricing tier), the streaming video company is not exactly expected to boast about explosive growth.
What to look for in Netflix’s Q3 earnings report:
Subscriber growth: Netflix expected to add 2.3 million subscribers in the third quarter. Last quarter, the company wound up missing its projection, causing its stock to drop. This time around, Netflix is hoping its international expansion will fuel better numbers.
Earnings drop: Analysts expect Netflix to report earnings of 6 cents per share, according to MarketWatch. That would be a 57% decline year over year. All told, Netflix is expected to report $2.28 billion in revenue for the quarter.
More original content? For Netflix, the most surefire way out of its slumping growth is to reel in subscribers with more hit shows. Expect Chief Content Officer Ted Sarandos to update shareholders on the company’s ongoing (and costly) efforts to ramp up its original content.