Netflix Freeloaders Really Have to Kick In Now

Netflix is showing it can handle ads. Much now rides on the streaming giant’s ability to get something from your kid’s roommate’s brother.

First-quarter results from Netflix on Tuesday were a decidedly mixed bag. Revenue of $8.16 billion for the period was roughly in line with projections from the company and Wall Street, and the company boosted its free cash flow target for the year by 17%. But Netflix added only 1.75 million new paid subscribers during the quarter, which was 20% below what analysts had expected. It said subscriber growth in the second quarter would be roughly similar to what it just reported—less than half the 4.1 million net new subscribers analysts were expecting for the period.