Netflix forecast disappoints as streaming competition looms

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(Reuters) – Netflix Inc reported quarterly results on Tuesday that beat Wall Street targets, but the world’s largest online streaming service predicted it would hook fewer new customers than expected through June, just as Walt Disney Co and others prepare to escalate the streaming video wars.

FILE PHOTO: The Netflix logo is shown in this illustration photograph in Encinitas, California October 14, 2014. REUTERS/Mike Blake/File Photo

Shares of Netflix traded down about 1 percent at $355.02 after-the-bell, paring losses following a deeper sell-off just after the results were released.

Netflix predicted it would pick up 5 million new streaming subscribers from April through June. That was below the 5.48 million consensus of industry analysts surveyed by FactSet.

“What’s making investors nervous is that there are signs of a slowdown in the second-quarter subscriber growth,” said Haris Anwar, senior analyst at Investing.com. “This is made all the more prominent by the looming threat of competition from Disney and Apple.”

From January through March, Netflix reported it added 7.86 million paid subscribers internationally, compared with the average analyst estimate of 7.14 million, according to IBES data from Refinitiv.

The company said it signed up 1.74 million paid subscribers in the United States in