Netflix nears 100 million subscribers

Brunilde Fioravanti
Aprile 21, 2017

Most of this growth is coming from worldwide markets, with a net addition of 3.5 million in during the period.

The trend has confronted Netflix with more competition in the battle for household entertainment budgets.

Analysts and investors still consider subscriber additions to be the company's most important metric. Notably, Netflix moved the release of season 5 of "House of Cards" to the second quarter, instead of the usual first quarter release.

Netflix revealled it will spend more than US$1 billion in marketing its content this year as its slate of originals continues to expand, and will up its investment in programmatic advertising.

"We're about 1 billion a week - so we've got a long way to catch up", he said.

In the quarter, Netflix, based in Los Gatos, Calif., reported profits of 40 cents a share, demolishing last year's 6 cents profit. For example, its show House of Cards, which was debuted previous year in first quarter, was shifted to second quarter, which is the reason for their lower-than-expected subscriber growth.

Other cable channels also are offering internet-only options as more viewers, especially younger people, eschew traditional TV packages and subscribe to streaming services instead. Netflix concluded March with nearly 48 million users outside the U.S. Its revenue of $2.64 billion in the first quarter remains flat with $2.64 billion. "Our focus also is on on-demand, commercial free viewing rather than live, ad-supported programming". This time, the company should jump over that 100 million subscriber level without any help from the DVD segment.

"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.

Netflix said Dave Chappelle: Collection 1, comprising two original stand-up performances from the comedian was its most-viewed comedy special ever. But we don't think it will have much of an impact on us as Netflix is largely complementary to pay-TV packages. That doesn't cover the entirety of the negative FCF - with other portions categorized as pertaining to "small and growing operating margins" - but it does make up a significant portion of the negative flow. "In Q1, we surpassed $2.5 billion in quarterly streaming revenue and added 5 million members".

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