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Netflix Inc.

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Netflix reported third quarter 2015 results wherein earnings came in line with the Zacks Consensus Estimate but revenues marginally missed. Lower-than-expected subscriber growth and increasing costs of acquiring new content weighed on the results. Nevertheless, management remains confident of continued increase in Netflix’s subscriber base to drive top line growth. To add more subscribers, the company is aggressively expanding overseas and expects to cover 200 countries by 2016. Netflix is also diversifying streaming content to boost subscriptions.  Consequently, Netflix expects to add 1.65 million subscribers in the U.S and 3.5 million subscribers internationally in the fourth quarter.  However, increasing content acquisition costs and intensifying competition remain an area of concern

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