Netflix to exceed 100 mn global subscribers over the weekend
Netflix (NASDAQ:NFLX) last posted its quarterly earnings data on Monday, April 17th.
He goes on to say, "Considering the new seasons of House of Cards and Orange is the New Black are scheduled for release later this quarter as well, we believe guidance could prove conservative".
Sacred Games, a Netflix original series in India, was also used an example of an global show Netflix is producing that is Hollywood-level quality. "If you own Netflix because you think they are going to add subscribers globally, you're still going to own it".
The market for subscription video services in Europe (EFA) is projected to expand by nearly $1 billion annually for the next five years, according to research firm ReThink Technology Solutions.
Netflix stock is still on a steady march downward after the company disappointed investors with the number of subscribers it added during the first quarter.
Los Gatos, the company in California has a current market value as $US63 billion.
The heavy second-quarter schedule comes with costs and highlights a dilemma.
On Monday, the company reported that its Q1 2017 streaming revenues surpassed $2.5 billion. The prediction had been made yesterday by the company with the release of its first-quarter earnings.
Netflix also noted that it plans to reach 100 million total global subscribers this weekend, implying 1.25 million net additions quarter-to-date, providing line of sight to the full quarter guidance.
Netflix reported profit of US$178 million on revenue of US$2.64 billion in the first three months of this year, compared with net income of US$28 million on revenue of US$1.96 billion in the same period a year earlier. The company said it added 1.5 million paid domestic subscribers and 3.8 million worldwide subscribers during the quarter, missing Graham's estimates of 1.9 million and 4.2 million, respectively. Revenue was projected to increase 35 percent year over year to $2.64 billion in the first quarter.
The company wants to be assessed in the future based on sales and margins, as opposed to subscriber growth.
Netflix has said - on many, many, many occasions - that it doesn't want to get into live sports. Netflix will spend more than $1 billion in marketing this year to drive customer acquisitions. The company has expanded in stages, and is having more success with older markets.
"I'm not sure what (Amazon does) will really affect us", he said.