A continuing $600 million dispute with Brazilian tax authorities has been cited for the weaker-than-estimated results. The dip also comes amid ongoing backlash by viewers and users over transgender content promoted for children by the streaming giant.
The results broke Netflix’s six-quarter streak of posting a profit that eclipsed analysts’ projections, despite modest growth in its ads business. The company did post a profit, though less than expected.
The Guardian overview of the results outcome pointed to other factors at play for the streamer – now and into the future:
The Los Gatos, California, company cited an unexpected $619m expense tied to the Brazilian tax dispute for the third-quarter earnings shortfall while hailing its lineup of distinctive TV series and films for keeping its audience engaged and delivering a mix of subscriber fees and increased ad sales that helped it deliver revenue that matched analyst forecasts.
Netflix’s earnings came after Warner Bros Discovery announced it may sell all or part of its holdings on Tuesday, which include HBO, DC Studios and CNN. Analysts speculated that Netflix may join the bidders looking to grab a piece of the storied production house.
As Breitbart News reported, Netflix is being assailed by critics attacking its children’s programs and its embrace of artificial intelligence (AI).
Dropped Netflix
Dropped cable!!