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Photo: Chesnot/Getty Images

Netflix stock was down roughly 4% in after-hours trading Thursday after the company posted quarterly results that missed investor expectations on revenue, though it beat earnings expectations.

Yes, but: Most importantly to Wall Street, Netflix beat expectations for user growth, growing its total paid subscriber base to nearly 140 million worldwide.

Why it matters: Netflix is under pressure to continue adding users in a streaming market that's becoming much more competitive and saturated. It's also under pressure to capture more time from its users' media diets.

  • Key quote: "We compete with (and lose to) Fortnite more than HBO."
  • Key stat: The company says that, per its calculations, Netflix viewing now accounts for 10% of television screen time in the United States among its subscribers.

By the numbers, per CNBC:

  • Earnings per share (EPS): 30 cents, vs. 24 cents forecast by Refinitiv consensus estimates
  • Revenue: $4.19 billion, vs. $4.21 billion forecast by Refinitiv consensus estimates
  • Total paid subscriber additions: 8.84 million vs. 7.61 forecast by FactSet
  • Domestic paid subscriber additions: 1.53 million, vs. 1.5 million forecast by FactSet
  • International paid subscriber additions: 7.31 million, vs. 6.1 million forecast by FactSet

News: The company anticipates that 80 million households will have watched its new hit "Bird Box" in the first four weeks of its release.

  • It also released internal viewing numbers for some of its other new hits, like 20 million household views in its first week out for its Spanish original show “Elite."

Between the lines: Netflix’s business model is to accumulate as many users as possible, then slowly hike the prices on those users to reach profitability. Its earnings release spoke to programming changes around that strategy.

  • On Tuesday, the company announced it is raising prices on all three of its subscription tiers in order to foot the bill for more original programming.
  • It said in its earnings release that it is focusing more on original content now than other companies' programming.
  • In its earnings release, Netflix highlighted, as it has done for several quarters now, that its original programming acts as a launching pad for new Hollywood stars.

Go deeper:

Go deeper

Trump pressures Barr to release so-called Durham report

Bill Barr. Photo: Jabin Botsford/The Washington Post via Getty Images

President Trump and his allies are piling extreme pressure on Attorney General Bill Barr to release a report that Trump believes could hurt perceived Obama-era enemies — and view Barr's designation of John Durham as special counsel as a stall tactic, sources familiar with the conversations tell Axios.

Why it matters: Speculation over Barr's fate grew on Tuesday, with just 49 days remaining in Trump's presidency, after Barr gave an interview to the Associated Press in which he said the Justice Department has not uncovered evidence of widespread fraud that could change the election's outcome.

CDC to cut guidance on quarantine period for coronavirus exposure

A health care worker oversees cars as people arrive to get tested for coronavirus at a testing site in Arlington, Virginia, on Tuesday. Photo: Olivier Douliery/AFP via Getty Images

The CDC will soon shorten its guidance for quarantine periods following exposure to COVID-19, AP reported Tuesday and Axios can confirm.

Why it matters: Quarantine helps prevent the spread of the coronavirus, which can occur before a person knows they're sick or if they're infected without feeling any symptoms. The current recommended period to stay home if exposed to the virus is 14 days. The CDC plans to amend this to 10 days or seven with a negative test, an official told Axios.

  • The CDC did not immediately respond to a request for comment.
4 hours ago - Health

CDC panel: COVID vaccines should go to health workers, long-term care residents first

Hospital staff work in the COVID-19 intensive care unit in Houston. Photo: Go Nakamura via Getty

Health-care workers and nursing home residents should be at the front of the line to get coronavirus vaccines in the United States once they’re cleared and available for public use, an independent CDC panel recommended in a 13-1 emergency vote on Tuesday, per CNBC.

Why it matters: Recent developments in COVID-19 vaccines have accelerated the timeline for distribution as vaccines developed by Pfizer and Moderna undergo the federal approval process. States are preparing to begin distributing as soon as two weeks from now.