Light Reading

Netflix Sinks as It Cuts Q4 Subscriber Forecast

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
10/24/2012
50%
50%

Welcome to the broadband and cable news roundup, Hump Day edition.

  • Shares in Netflix Inc. (Nasdaq: NFLX) dropped 16 percent in after-hours trading Tuesday and continued their decline into Wednesday morning after the company delivered weak fourth-quarter guidance alongside disappointing third-quarter subscription totals. Netflix added 1.16 million new U.S. streaming customers, near the bottom of the 1 million to 1.8 million it had projected, a total that ensures that Netflix will likely miss its original goal of ending 2012 with 7 million new U.S. subscribers. Netflix put its full-year estimate for U.S. streaming subs at between 4.7 million and 5.4 million. "In perfect hindsight, it was not the best choice to put out that high a goal," Netflix CEO Reed Hastings told the Associated Press. Netflix posted third-quarter net income of US$8 million (13 cents per share) on revenues of $905 million. Netflix ended the quarter with 25.1 million U.S. subs, and 4.3 million international customers. It now expects fourth-quarter revenues of $919 million to $943 million; analysts predicted $942 million.

  • Intel Corp. (Nasdaq: INTC) confirmed it has licensed the Comcast Corp. (Nasdaq: CMCSA, CMCSK) Reference Design Kit (RDK), a video software bundle for new hybrid QAM/IP set-top boxes and IP-only client devices that employ the tru2way platform. The first RDK deployment example is the Comcast X1 platform, which ties a Pace plc gateway with Intel's Atom CE4200 media processor and its Puma-class Docsis 3.0 chipset. Here's a list of known RDK licensees so far. (See Cisco, Humax & Technicolor Join Comcast's Crew , Comcast's X1 to Fly First in Boston? , and Comcast's Set-Top Accelerator Gains Traction .)

  • Harmonic Inc. (Nasdaq: HLIT) posted a third-quarter GAAP net loss of $8.2 million (7 cents per share) on revenues of $136.7 million, which compares with year-ago net income of $3.5 million (3 cents per share) and revenues of $138.9 million. Among product segments, soft sales in Europe caused video processing revenues of $49.9 million to fall short of the $59.3 million expected by Jefferies & Co. Inc. analyst James Kisner. Harmonic is expecting fourth-quarter revenues in the $132 million to $142 million range.

  • Arris Group Inc. (Nasdaq: ARRS) has tailored its advanced advertising platform for IPTV providers and will show it all off at this week's TelcoTV 2012 show in Las Vegas. Arris, which is expanding beyond its traditional cable market, says its new multicast IPTV platform is capable of delivering regional, zoned and targeted ads. Part of its move into the telco TV world is born out of its 2011 acquisition of BigBand Networks Inc. (See Arris Snaps Up BigBand .)

  • SeaChange International Inc. (Nasdaq: SEAC) will also be at TelcoTV to demonstrate its cloud-based video software for multi-screen applications and services, including its Adrenalin TV Everywhere backoffice platform, HTML5-based Nitro user interface, and Infusion ad system for set-tops, tablets, smartphones and other IP-connected screens.

    — Jeff Baumgartner, Site Editor, Light Reading Cable



    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View
    Educational Resources
    sponsor supplied content
    Educational Resources Archive
    Flash Poll
    From The Founder
    The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
    LRTV Huawei Video Resource Center
    Huawei Shares Its Vision of the Future of Mobile Networks Innovations

    2|26|15   |   2:30   |   (0) comments


    Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
    LRTV Huawei Video Resource Center
    Accelerate Digitizing, Boost Digital Business

    2|26|15   |   6:14   |   (0) comments


    A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
    LRTV Huawei Video Resource Center
    The Secret Recipe to Enabling Hyper-Growth Industries

    2|26|15   |   3:38   |   (0) comments


    With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
    LRTV Documentaries
    BTE 2015 Is Bigger & Even Better

    2|25|15   |   03:13   |   (4) comments


    This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
    LRTV Interviews
    Light Reading ICT Leaders Roundtable at MWC 2015

    2|12|15   |   1:07   |   (2) comments


    On Sunday March 1, 2015, Light Reading will host an ICT Leaders Roundtable in partnership with Huawei. At this half-day event, CIOs, analysts and researchers will discuss key industry trends like virtualization in the cloud with a specific focus on new business models. Located at the luxurious Renaissance Hotel near the Fira Barcelona, space is limited so please ...
    LRTV Documentaries
    Going Green in 2015

    2|12|15   |   02:04   |   (0) comments


    Energy efficiency is set to be an incredibly hot topic in the telecom industry this year.
    LRTV Custom TV
    SDN & NFV: Where Are We Going From Here?

    2|11|15   |   11:27   |   (0) comments


    Vitesse Semiconductor CTO Martin Nuss gives his perspective on why SDN and NFV should be tightly interconnected and how he sees the industry moving forward.
    LRTV Documentaries
    Time for Gigabit Europe?

    2|9|15   |   01:27   |   (4) comments


    Gigabit broadband networks are springing up all around the US and they'll soon become more commonplace in Europe.
    LRTV Interviews
    Brocade Brings New IP Vision to 2020 Vision Executive Summit

    2|3|15   |   4:23   |   (0) comments


    In December 2014, Light Reading gathered telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Brocade's Kelly Herrell shared his company's strategy at ...
    LRTV Interviews
    Brocade's Kelly Herrell on the New IP

    2|2|15   |   12:36   |   (0) comments


    In December 2014, Steve Saunders sat down with Brocade VP of Software Networking Kelly Herrell at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Brocade's approach to the New IP, the future of the telecom industry, and more.
    LRTV Huawei Video Resource Center
    Dr. Dong Sun Talks About Carriers' Digital Transformation & Huawei’s Telco OS

    1|29|15   |   6:28   |   (0) comments


    Dr. Dong Sun, Chief Architect of Digital Transformation Solutions at Huawei, discusses how telecom operators can become digital ecosystem enablers and deliver optimal user experiences that are in real-time, on-demand, all-online, DIY and social (ROADS).
    LRTV Huawei Video Resource Center
    Huawei's Chief Network Architect Talks about Network Experience & Operators’ Strategies

    1|29|15   |   3:39   |   (0) comments


    In the digital age, network experience has become the primary productivity especially for telecom operators. In this video, Wenshuan Dang, Huawei’s Chief Network Architect, discusses how carriers can tackle the challenge of infrastructure complexity in order to enhance business agility and improve user experience.
    Upcoming Live Events
    March 17, 2015, The Cable Center, Denver, CO
    April 14, 2015, The Westin Times Square, New York City, NY
    May 12, 2015, Grand Hyatt, Denver, CO
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 8, 2015, Chicago, IL
    June 9-10, 2015, Chicago, IL
    June 9, 2015, Chicago, IL
    June 10, 2015, Chicago, IL
    All Upcoming Live Events
    Infographics
    Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
    Hot Topics
    Cyber Security Expert Warns: You're Doing It Wrong
    Sarah Thomas, Editorial Operations Director, 2/23/2015
    10 Weirdly Useful IoT Devices
    Eryn Leavens, Copy Desk Editor, 2/24/2015
    Small Cells Enabling Location Services
    Sarah Thomas, Editorial Operations Director, 2/25/2015
    MWC: Let the Madness Begin
    Ray Le Maistre, Editor-in-chief, 2/23/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.
    G'day! And welcome to an entirely new feature on Light Reading -- our weekly "CEO-to-CEO" interview.