Netflix forecasts third-quarter subscriber additions below estimates, shares fall

Netflix Inc on Thursday forecast paid subscriber additions for the third quarter below estimates, in an early sign that the lockdown boost to streaming may be waning as stay-at-home orders ease, sending shares down 10 percent.

The company said it expects to add 2.5 million paid subscribers globally in the third quarter. Analysts were expecting it to add 5.35 million subscribers, according to Refinitiv data.

The streaming giant also said it appointed Ted Sarandos co-chief executive officer along with current chief Reed Hastings. Sarandos was previously the chief content officer.

The coronavirus-induced layoffs and furloughs across industries coupled with easing lockdown rules may dampen the boom in demand for streaming services as people prioritize stepping out of their homes.