Netflix adds 10.09 million subscribers in Q2, forecasts weak growth in Q3

Netflix Inc added more paid subscribers than expected in the second quarter as audiences bound to their homes due to the Covid-19 restrictions binge watched its shows in the absence of live events and movie theaters.

Netflix said on Thursday it added 10.09 million paid subscribers globally during the quarter ended June 30 compared with analysts' estimates of 8.07 million, according to research firm Refinitiv.

The streaming giant also said it has appointed Chief Content Officer Ted Sarandos as co-chief executive officer.

The company 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 per cent.

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 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 per cent to $6.15 billion in the second quarter ended June 30, beating estimates of $6.08 billion, according to IBES data from Refinitiv.