Everyone makes mistakes. But this one, flagged in an SEC filing this morning, is notable because it’s so big and so important for investors who want to know whether the streaming video company is biting off more than it can chew financially as it expands overseas. Netflix says it corrected “a typographical error” that led it to report last week that its recently launched services in Latin America and the UK and Ireland “have contributed to a 14% increase in our content expenses in the International segment.” That claim appeared twice in the quarterly report. Both now have been changed to 348%. It’s a sore point, especially after Netflix’s credibility took a hit from its overoptimistic forecast that it would add 7M domestic streaming subscribers in 2012 — which it just reduced to about 5M. Susquehanna Financial Group’s Vasily Karasyov said last week that “it’s fair for investors to wonder” whether Netflix’s hopes for overseas growth “will also prove to be too optimistic.” Janney Capital Markets’ Tony Wible warned investors to watch international costs and Netflix’s “commitment to contain these costs.” And Wedbush Securities’ Michael Pachter said that if “content costs rise faster than we have modeled or growth stall sooner than we have modeled, we are prepared to lower our quite generous $45 price target.”
Netflix Fixes A Typo: International Content Expenses Were up 348%, Not 14%, In Q3
What's Hot on Deadline
'The Good Place's Jameela Jamil Blames Porn And Music Videos For Consent Issues Following Aziz Ansari Allegations
Two More Sexual Misconduct Allegations Against Stunt Coordinator Joel Kramer Include One Involving 10th Grade Girl
Eliza Dushku's Former Agent & A Friend Confirm Her Sexual Assault Story On 'True Lies' Set: "Nobody Really Did Anything"
Aziz Ansari Allegations Open New Chapter in #MeToo Movement, Ansari Responds "I Took Her Words to Heart"
‘70s Screen Icon Pam Grier Speaks On Sex Harassment & Her Biopic With Jay Pharoah Playing Richard Pryor
Arnold Schwarzenegger "Shocked" About Eliza Dushku's 'True Lies' Allegations, Calls Her "So Courageous"
Sundance Names Jada Pinkett Smith, Octavia Spencer & Chaz Ebert To Jury; Jason Mantzoukas To Host Awards Show
Latest Business News
- Fathom Events Taps Ex-DWA Exec Gordon Synn For Key Role; Blue Fox Names Richard Stafford Head Of PR
- Media Content Wars Will Require Both Scale And Reach; “A Brand Only Gets You So Far” — NATPE
- Jaunt Strikes First-Look VR Deal With XYZ Films
- Dylan Farrow Opens Up In First TV Interview About Woody Allen Allegations: “I Am Telling The Truth”
- Jane Fonda, Common & Gloria Allred To Speak At Sundance Respect Rally
- Broadway B.O. Leaps Even As ‘Lion King’ & ‘Wicked’ Feel Winter Chill