Netflix added 1.16 million net streaming subscribers in the
U.S. for the third quarter of 2012 -- at the low end of its expectations -- and
the company said it will miss its target of adding 7 million subs for the full
After the earnings were released, Netflix shares fell as
much as 17% in after-hours trading. Prior to the earnings announcement, Netflix
shares closed up 0.5%, to $68.22 per share Tuesday.
"While we are not growing membership as fast as in 2010, we
think that over time nearly all U.S. households will be broadband households,
nearly all video will be Internet video, and that as our content and member
experience continue to improve faster than competitors, our long-term domestic
market opportunity remains 2-3x that of linear HBO," CEO Reed Hastings and CFO
David Wells said in a letter
At the end of September, Netflix had 25.1 million domestic
streaming customers and 4.3 million non-U.S. streaming subs (after adding a net
690,000 in the period).