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Business

Netflix not adding eyeballs fast enough for market

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Business

Netflix not adding eyeballs fast enough for market

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COMING UP:Netflix not adding eyeballs fast enough for market

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00:00:02
>> Investors binge watching the Netflix subscriber numbers, disappointed and punishing the company Tuesday. The stock dropping about 14% after the company that brought us House of Cards only added a 160,000 US subscribers. Much, much lower than the roughly half a million it had forecast. That's the biggest daily percentage drop for the stock since October 2014 when it also tumbled on weak subscriber numbers.
00:00:29
Netflix made a big push internationally this year, rolling out in over 130 new countries. But there too it missed it's 2 million new subscriber forecast, hitting only a million and a half. Investors have been worried about mounting competition for Netflix, especially from players like Amazon, which has given viewers the option of a monthly video streaming service instead of an annual payment for the whole Amazon Prime package.
00:00:56
Reuters correspondent Lisa Richwine in LA.>> CEO Reed Hastings said he does not think that increase competition in the US had any affect on subscribers. He based that on the fact that in other countries, like Canada, where they sell the same patterns as they did in the United States.
00:01:12
And there's not more competition in Canada but there is a price increase.>> Netflix has been phasing in price hikes for existing customers by a dollar or two a month. The company said that the increases are necessary as it ups its spending on movie and TV content. Netflix has also been cutting more deals with some more traditional players.
00:01:31
Most recently, it signed a deal with cable operator Comcast that would allow users to access its service on Comcast X1 set top boxes later this year.