Reed Hastings isn't too concerned about the mixed picture in Netflix's earnings report.
Five days after Netflix made history by becoming the first streaming service to get Emmy nominations for original content, the company reported earnings of 49 cents per share, beating Wall Street expectations by 9 cents. But subscriber numbers, which came in right in the middle of projections, and the company's third quarter outlook disappointed investors, sending the stock lower after-hours. (For the latest stock price, click here.)
(Read more: Netflix adds subscribers, but fewer than expected)
I sat down with Hastings after moderating a new version of an earnings call: a Google Plus Hangout with emailed questions from a range of investors and sell-side analysts. The Netflix CEO brushed off the after-hours decline in the stock and said he's pleased with a "tremendous quarter."
"There's always ups and downs in the short term in the stock price," he said. "But the big picture is great. A year ago, we were at $80. Now we're at $250. Five years ago we were at $30, so we're feeling great about the long term."
The fact that Netflix didn't hit the top end of its subscriber growth projections was a point of concern for investors. But Hastings says that was by design; The company tries to forecast to hit right in the middle. Hastings pointed out that the company had more net additions than a year ago. Though the company wouldn't reveal the quantifiable impact of its originals, Hastings says "the day that 'Arrested Development' was released we saw more growth than we expected."
One big question for Netflix as it attracts subscribers is how it plans to cover its off-balance-sheet content costs. Hastings acknowledged those costs are significant.