1/14/2024 0 Comments Netflix subs![]() “Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. “Our revenue growth has slowed considerably as our results and forecast below show,” Netflix said in a letter to shareholders that accompanied its Q1 earnings release. The company said net cash used in operating activities totaled $923 million, with free cash flow reported at $802 million. Netflix had a net income of $1.6 billion for the quarter. Operating income was reported at $1.97 billion with an operating margin of 25.1%. On Tuesday, Netflix reported diluted EPS of $3.53 on $7.868 billion in revenue. Analysts forecast earnings per share (EPS) of $2.89 on $7.93 billion in revenue, according to analyst consensus data provided by Refinitiv. In terms of its Q1 financial results, Netflix beat Wall Street’s expectations for earnings but lost on revenue. We should be able to, 10 years in now, get more bang for our buck relative to what we’ve done ourselves and relative to the market.” And we’re really focused on making sure that the impact of the slate continues to grow. “Most important though is the impact of the slate. “We will continue to grow the content spend relative to prior years,” Sarandos said. Netflix execs previously said the streamer intends to spend around $18 billion on content this year, a figure Sarandos stood behind Tuesday, though CFO Spencer Neumann cautioned Netflix will be “smart and prudent in terms of pulling back on some of that spend growth to reflect the realities of the revenue growth of the business.” Hastings also pointed to how cracking down on password sharing will help Netflix bring in subscribers it technically already has as users: “They love the service, we’ve just got to get paid.” So we’ve got to figure out these different models that we’re doing now to more effectively monetize that viewing.”Ĭo-CEO Reed Hastings said Netflix is currently exploring launching lower-cost, ad-supported streaming plan options, something the streaming mogul has long been against. Now, we talked about being highly penetrated in some of those core markets with users, which means that it’s harder to get them to join Netflix if they are already using Netflix. “That’s what we’re really focused on and that’s a thing we can continue to grow the business in. “We’ve got to compete, and we’ve got to continue to improve on the core service which is making TV series and films and now games that people really love,” co-CEO and chief content officer Ted Sarandos said during the company’s pre-recorded earnings presentation, which was posted after the financial data was released Tuesday. In after-hours trading, the stock fell more than 25% following Netflix’s Q1 subscriber loss reveal and projections for deeper loss in Q2. Netflix stock closed Tuesday at $348.42 per share. This report by The Canadian Press was first published June 23, 2023.Click here to sign up for Variety‘s free Strictly Business newsletter covering earnings, financial and investment news, and more. Subscribers currently on its $9.99 basic service will be grandfathered into the plan unless they switch to another option or cancel their account. Netflix has already removed the basic tier for new subscribers and a company representative said it will also be removed as an option for current members "in the near future." The change in subscription options comes months after Netflix used the Canadian market as a testing ground for its password-sharing crackdown. There's also the premium plan for $20.99 with 4K high-definition video and the option to add up to two members who don't live in their household. The next level up is $16.49 per month to watch without ads, with simultaneous viewing on two devices. Netflix's ad tier costs $5.99 and allows viewing on up to two screens at once with commercial interruptions. That means new Netflix subscribers will have to decide whether they're ready to sit through commercial breaks or fork out a bit more money for an ad-free experience. The streaming giant says it's phasing out the $9.99 "basic" option from its price plans, taking away the cheapest subscription without ads. ![]()
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