What's going on?

Netflix�s third-quarter profit beat investors� forecasts late on Wednesday � but their eyes were also trained on its slightly weaker subscriber growth, which might not bode well for the future (tweet this)…

What does this mean?

Netflix�s revenue last quarter was roughly what investors predicted, but it added fewer paying subscribers than it promised � falling short in the US, where it�s recently upped prices. And things are only going to get tougher, with rival service Disney Plus launching in November.

Netflix says it�ll add 7.6 million paying subscribers this quarter � lower than the 9 million investors hoped for. And even if the streaming giant does hit its subscriber target, it might need to rely on discount pricing to get viewers to keep watching � which could result in even lower revenue growth.

Why should I care?

For markets: All about that subscriber growth.
One of the most important metrics for Netflix is subscriber growth. Subscribers� fees generate regular and predictable income for the company, and it�s with that money Netflix aims to covers its costs � and eventually pay a dividend to investors in its shares. This income also brings debt investors comfort that Netflix will be able to make its interest payments � risking bankruptcy if it couldn�t � and someday repay the $13 billion it owes. Netflix�s better-than-expected profit, then, could�ve offset worries about slower subscriber growth, explaining the stock�s initial rise on Wednesday.

For you personally: Hope you like Netflix Originals�
Netflix might be cutting back on stand-up comedy, but that doesn�t mean it�s reining in its spend on original content. In fact, it plans to spend as much as $15 billion on shows this year. That�s probably justified: Netflix has revealed its most popular content is indeed homegrown. And as rivals yank heavy-hitters like Friends, Star Wars, and the Marvel movies from its platform, it�ll hope the likes of Stranger Things and 13 Reasons Why are enough to keep your attention�