FILE PHOTO: The Netflix logo is pictured on a television remote in this illustration photograph taken in Encinitas, California, U.S., January 18, 2017. REUTERS/Mike Blake
(Reuters) – Netflix Inc (NFLX.O) on Thursday forecast paid subscriber additions for the third quarter below estimates, in an early sign that the lockdown boost to streaming may be waning as stay-at-home orders ease, sending shares down 10%. The company said it expects to add 2.5 million paid subscribers globally in the third quarter. Analysts were expecting it to add 5.35 million subscribers, according to Refinitiv data.
The streaming giant also said it appointed Ted Sarandos co-chief executive officer along with current chief Reed Hastings. Sarandos was previously the chief content officer.
The coronavirus-induced layoffs and furloughs across industries coupled with easing lockdown rules may dampen the boom in demand for streaming services as people prioritize stepping out of their homes.
Revenue for the company rose 24.9% to $6.15 billion in the second quarter ended June 30, beating estimates of $6.08 billion, according to IBES data from Refinitiv.
Netflix added 10.09 million paid subscribers globally during the second quarter, beating analysts’ average estimate of 8.07 million.(bit.ly/2DQW1n9)
Reporting by Neha Malara and Lisa Richwine in Los Angeles; Editing by Arun Koyyur