Don’t believe the hype: the streaming boom is far from over. Those writing off Netflix are going to look silly

The sector’s biggest player hit a road bump in terms of new subscribers, missing its own forecast. Wall Street duly had a tizzy but it’s missing the bigger picture, argues James Moore

Netflix overpromised to the tune of 2 million subscribers (AFP/Getty)

Wall Street’s laser-like focus on quarterly earnings reports frequently rob it of a sense of perspective. Case in point: Netflix. 

If you haven’t seen the numbers yet, you may know that in terms of subscribers, Netflix missed its own forecasts by quite a bit. A fatal mistake that. Overpromise and underdeliver and you’re going to get punished, and Netflix overpromised to the tune of 2 million subscribers, with the number rolling in at 208 million against its predicted 210 million. 

Here’s what I think the legion of doubters who emerged to lay into the shares, which looked sicker than I would if you forced me to watch one of its exclusive Adam Sandler offerings, missed.