Skip to main content
Complete Olympic Games coverage at your fingertips
Your inside track on the Olympic Games
Enjoy unlimited digital access
$1.99
per week for 24 weeks
Complete Olympic Games coverage at your fingertips
Your inside track onthe Olympics Games
$1.99
per week
for 24 weeks
// //

Netflix reported quarterly results on Thursday afternoon.

Mike Blake/Reuters

Netflix Inc. on Thursday elevated its content chief Ted Sarandos to co-chief executive, making the 20-year veteran of the pioneering streaming-video service a clear successor to founder Reed Hastings.

The promotion came as one of the world’s largest subscription streaming service forecast its subscriber growth during the coronavirus pandemic would slow even more than Wall Street expected during the third quarter, sending its shares tumbling more than 10 per cent in after-hours trading.

Mr. Sarandos will continue his role leading the content operations. In a blog post, Mr. Hastings said he had no plans to depart anytime soon. “It’s why I am so excited about being at Netflix for the decade ahead,” Mr. Hastings wrote.

Story continues below advertisement

For July through September, Netflix forecast it would add 2.5 million new paid streaming customers around the world. Analysts on averaged expected a projection of 5.3 million, according to IBES data from Refinitiv.

“Investors are disappointed by the weak future guidance and see the initial boost from the pandemic coming to an end,” Haris Anwar, Investing.com senior analyst, said.

For the June quarter, the company reported diluted earnings per share of US$1.59, below analyst forecasts of US$1.81. Revenue climbed 25 per cent to US$6.1-billion.

Netflix added 10.1 million streaming subscribers from April through June as the coronavirus forced people around the world to shelter at home. Those restrictions led to “huge growth in the first half of the year,” Netflix said in a letter to shareholders, but “as a result we expect less growth for the second half of 2020 compared to the prior year.”

Shares of Netflix, which ranked among the biggest gainers of the pandemic, plunged 10 per cent to US$472.89 in after-hours trading.

With the new members, the world’s dominant streaming service reached nearly 193 million paying online customers. Netflix is trying to win new customers and outrun the competition as viewers embrace online viewing. The start of the pandemic sparked new interest in the service as people around the world were told to stay home, movie theaters went dark and sports leagues cancelled live games.

New releases during the quarter included Space Force, Too Hot to Handle, a Jerry Seinfeld comedy special and new seasons of Money Heist and Dead to Me.

Story continues below advertisement

Netflix’s membership rolls rose even as it faced more streaming competition than ever. Walt Disney Co.’s Disney+ came online in November, and AT&T Inc. debuted HBO Max in May, among other newcomers.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies