Netflix on the verge of hitting 100 million subscribers

Posted Апреля 24, 2017

New domestic members came in at 1.42 million, versus Wall Street forecasts 1.59 million, and Netflix guidance of 1.5 million.

The streaming firm added 4.95 million new subscribers in the quarter, fewer than the 5.2 million it had forecast.

Netflix management chalked up the subscriber growth miss in part to the delay of popular original content. Netflix started life as a DVD rental business in 1998, but launched its video streaming service in 2007.

Analysts were expecting slower growth this quarter, after Netflix expanded to more than 130 new countries in the year-earlier period.

'But Netflix clearly had a vision before those devices became so ubiquitous'. This coming weekend, it is about to have even more reasons to celebrate as it expects to hit the 100 million subscriber mark.

"The thing is, everybody watches TV, and almost everybody has the Internet", Netflix CEO Reed Hastings said during the company's first-quarter 2017 earnings webcast.

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While its subscriber growth slowed in Q1 2017, Netflix ended the period with a total of 98.7 million streaming memberships, consisting of 50.8 million in the US and 47.9 million internationally. Netflix now expects to cross the 100 million subscriber threshold in the second quarter; the company projected that it will have 101.95 million total members at the end of Q2.

The company's progress toward reaching that goal has helped drive Netflix's stock price progressively higher during the past five years, a stretch that has seen the video service add 72 million more subscribers.

In the wake of a series of genre-busting content and platform deals that have blurred the lines between broadcasters and subscription video-on-demand (SVOD) providers, Netflix flatly rejected the possibility of live sports programming on its platform. Analysts are forecasting net income of $477.2 million, or $1.09 a share, on revenue of $11.2 billion, based on the average of estimates compiled by Bloomberg.

While Q1 for Netflix fell below expectations, causing the company's shares to plunge, Q2 is shaping up to be a rocket. Analysts predict Netflix will make $482 million on revenue of more than $11 billion for the entire year. For the $1bn it plans to spend on marketing, about 600% of that will be spent on content.

Netflix's marketing budget has almost doubled over the past few years from $607,186 in 2014 to a forecast of more than $1 billion this year.

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