Netflix Blames Chip-Based Credit Cards for U.S. Growth Shortfall
- U.S. subscriber growth lower than estimated last quarter
- Some subscribers were dropped by `involuntary churn'
Netflix Blames Chipped Credit Cards for Slow Growth
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Netflix Inc., the top-performing stock in the Standard & Poor’s 500 index this year, fell as much as 7.4 percent after saying the introduction of new chip-based credit cards cut off some customers, leading to lower-than-estimated U.S. subscriber growth last quarter.
Profit also fell short in the third quarter as the online video service sped up the recognition of some programming costs. Netflix signed 880,000 new domestic subscribers in the period, according to a statement posted on its website Wednesday. That missed the 1.25 million average of eight analysts’ estimates compiled by Bloomberg.