SAN FRANCISCO (AP) – Netflix is testing the financial limits of its streaming video service as the rising cost of producing its own programming pushes up subscription prices.
The latest reminder came Monday with the company’s third-quarter earnings report, which revealed that Netflix added 370,000 U.S. subscribers. That marks its second consecutive quarter of sluggish U.S. growth since lifting a two-year rate freeze and increasing prices by as much as 20 percent for more than 20 million existing U.S. subscribers.
While the latest quarterly subscriber gain exceeded management’s modest projections, it fell far below the 880,000 U.S. customers that Netflix picked up last year.
Netflix fared far better overseas, where it added 3.2 million subscribers in 189 countries outside the U.S.
Investors applauded the performance, and Netflix’s stock soared 20 percent in extended trading.