Netflix shares swung lower Thursday as spending at the leading streaming television service weighed on quarterly revenue that fell slightly short of expectations.

Netflix shares sank two percent to $345.84 in after-market trades that followed release of earnings figures that showed the Silicon Valley company logged profit of $134 million on revenue of $4.2 billion in the final three months of last year.

That compated with a profit of $186 million on revenue of $3.3 billion in the same period the prior year.

Netflix ended the year with 139 million paying members worldwide, up 29 million from the start of the year.

Operating margin -- the money a company keeps after expenses -- shrank to 5.2 percent from 7.5 percent in a year-over-year comparison of quarters.

The company said it had expected its margin to dip because of the number of shows that launched in the quarter.

"Our multiyear plan is to keep significantly growing our content while increasing our revenue faster to expand our operating margins," Netflix said in a letter to shareholders released along with the earnings report.

Over the past quarter, Netflix said it added 8.8 million new subscribers at the end of last year, with 7.3 million of those outside the US.

Netflix unveiled plans Tuesday to boost prices for US subscribers as it faces increasing competition in the streaming television market.

The California-based company will raise the price of its most popular streaming plan with high-definition video by 18 percent to $12.99 per month.

Netflix will also be boosting prices of some other subscription plans and will apply those rates to Latin America and Caribbean countries where it bills customers in US dollars.

The company has been investing heavily in original content including hit shows like "Stranger Things," "The Crown" and "Orange Is The New Black," as it faces competition from the likes of Amazon and Hulu, and new offerings from traditional media giants such as Disney, CBS, and a newly announced plan from Comcast-owned NBCUniversal.

Related Links
Satellite-based Internet technologies

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

China's Huawei fires employee detained in Poland
Beijing Jan 12, 2019
Huawei said Saturday it has fired a Chinese employee who was arrested in Poland on espionage allegations, as China's telecom giant distanced itself from the case amid Western concerns that it could act as a proxy for Chinese security services. This week's detention of Wang Weijing follows the December arrest of Huawei's chief financial officer in Canada and US efforts to blacklist the company internationally over security concerns. While China's government has vociferously defended Huawei CFO Me ... read more