Can Netflix Live Up to Its Own Hype?

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July 22 (Bloomberg) -- Netflix reported 630,000 new U.S. internet customers in the second quarter, missing analysts’ estimates with results that underscored the difficulty meeting investors’ growth expectations. Jon Erlichman reports on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

John, what is this all about?

This is quarterly earnings day for the company.

In the case of the company where the stock price has been rocketing up, there are big expectations.

For netflix, the expectations were not met.

They have been big growth engines over the past year for the company.

The number of people who are subscribing to the business, those numbers did not continue to climb and did not come in at the levels come in wall street thought they would.

In the number of americans who are now using netflix on a monthly basis, the number is a sickly in the 30 million range.

Netflix estimates the number could climb close to one million over the next quarter . overseas, the number of people using netflix, that number also continues to climb.

As we pointed out, there have been skyhigh expectations and the company is also riding a wave of the diamond tied to its original programming.

House of cards, starting -- starring kevin spacey, arrested development, those shows are receiving emmy nominations last week heard a lot hype around it.

The original content is the late part -- small part of what they have to spend to keep the customers happy.

Reed hastings said tonight in this -- the netflix pricing model will not change.

That is right.

This always becomes the issue with netflix.

If people determine subscriber growth, and they have incredibly high estimates internally for how many people they think can use their service, if those , -- numbers start to slow down, does netflix have to push up the price to $15 a month?

They are against that, at least publicly for now, because they feel like they can get more people using the service, that rings in the revenue they need.

It is an impressive growth story, but a competitive one.

This text has been automatically generated. It may not be 100% accurate.


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