The company also promoted Ted Sarandos from chief content officer as co-CEO who will share the top spot with co-founder Reed Hastings.

Sarandos will retain his current role and join the board, Netflix said in a letter to shareholders on Thursday.

Poll

Who will win the Punjab Elections?

BJP 32.79%

AAP 42.62%

INC 24.59%

Submit

View All In Poll

The stock nosedived after Netflix provided third-quarter revenue guidance of $6.33 billion, below the Wall Street estimates of $6.40 billion.

Netflix expects 2.5 million net subscriber additions for the third quarter, while analysts were expecting 5.27 million.

"Growth is slowing as consumers get through the initial shock of Covid and social restrictions. Our paid net additions for the month of June also included the subscriptions we cancelled for the small percentage of members who had not used the service recently," the company said in the shareholder letter.

Netflix said that "current infection trends create more uncertainty for our productions in the US. Parts of the world like India and some of Latin America are also more challenging and we are hoping to restart later in the year in these regions".

The company, however, forecasts to see a 16 per cent operating margin for 2020 and 19 per cent for 2021.

"This is a great growth opportunity for us, so any revenue upside we would tend to put into more content for our members, which tends to generate more growth over time," said Hastings.

Netflix currently has 193 million paid memberships in over 190 countries.

Netflix now counts short-video making app TikTok among its rivals.

"TikTok's growth is astounding, showing the fluidity of internet entertainment," the company wrote to shareholders.

Mid-Day is now on Telegram. Click here to join our channel (@middayinfomedialtd) and stay updated with the latest news

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever