Mercredi, 20 Février 2019
Latest news
Main » Netflix shows Bird Box and Elite drive subscriber growth

Netflix shows Bird Box and Elite drive subscriber growth

20 Janvier 2019

The company released its massively popular dystopian movie "Bird Box" late in the fourth quarter, which helped attract a record 8.8 million new paid streaming customers in the period, but investors appear to have factored that into their valuation, pushing Netflix shares up more than 50 percent since late December.

The stock fell about 4% immediately following the news.

The 8.8 million rise in paid subscribers - majority from overseas - marked 6% growth from the prior quarter.

Annual revenue for the company came in at $16 billion in 2018, up 35 percent from the previous year with operating profits doubling to $1.6 billion.

Last week it became apparent to several Canadian viewers that the stock footage being used in some Netflix films was actually from a recent Quebec tragedy in which a derailed cargo train killed 47 people.

Netflix expects earnings per share of 56 cents on revenue of $4.49 billion, compared with Wall Street consensus estimates of 82 cents and $4.61 billion. For the first quarter, Netflix predicted even a growth in customer numbers by 8.9 million, which was above the expectations of analysts.

Netflix unveiled plans Tuesday to boost prices for USA subscribers as it faces increasing competition in the streaming television market.

Management said domestic average selling price will "improve over the course of the year" and result in revenue growth for 2019.

"We deeply regret that this happened and sincerely apologise to anyone who was offended, especially the victims and their families", the company said.

Netflix reported earnings two days after it confirmed a fee hike of $1 to $2, depending on the subscription plan.

Netflix says the funds from the increased pricing will be used for its original content and further accelerate revenue and overall growth. AT&T's WarnerMedia unit plans a broader streaming service this year centered on HBO.

But the message is clear: At any given moment, a significant percentage of the USA population is watching Netflix.

Bank of America's Nat Schindler maintains a Buy rating on Netflix with a price target lifted from $440 to $450.

That's because worldwide growth will be a key driver for Netflix's continued dominance of the streaming video industry in the future.

Global hits are also receiving impressive viewership numbers with Spanish original Elite watched by 20 million member households around the world in its first four weeks. "I don't know if this is happening all the time, but we are looking for assurances from Netflix that... they are going to remove them", Morin said in an interview, Canada's The Globe and Mail reported.

Even more detailed statistics were provided from Netflix including its USA market share of 100 million hours of viewing per day.

Netflix shows Bird Box and Elite drive subscriber growth