Netflix Cites Olympics as Hurting Q3 Sub Growth, Viewing

Company adds net 530,000 U.S. streaming subs to stand at 23.9 million

By Todd Spangler, Multichannel News -- Broadcasting & Cable, 7/24/2012 4:42:56 PM

Netflix expects NBCUniversal's coverage of the 2012 London Olympic Games to have a "negative impact" on U.S. viewing and subscriber signups for the current quarter.

The company on Tuesday said it gained 530,000 streaming subscribers in the U.S. in the second quarter of 2012 to stand at 23.9 million and added another 560,000 internationally -- but the company's growth rates were well below its Q1 results.

For Q3, Netflix said it expects 1 million to 1.8 million U.S. net adds. "If we finish Q3 in the high end of that range, we would remain on track for 7 million domestic net additions for the year; otherwise it would be challenging to achieve that goal by year end," CEO Reed Hastings and CFO David Wells said in a letter to shareholders.

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