The total number of subscribers amounted to 125 million million, from over 117 million in the previous quarter and nearly 98 million year-on-year, including nearly 57 million in the U.S. and over 68 million outside. "Global profits may remain elusive due to competition for content and subs, and the price increases could cause a deceleration in subscriber growth". Operating Margin is seen at 7.2 percent. For £7.99 you can get high definition streams and can watch on up to two devices at the same time, and with the £9.99 "premium" package you get access to the 4K Ultra HD content and can watch on four devices simultaneously.
Swinburne argues that Netflix's 120 million current subs represent a valuable core out of the potential 660 million addressable homes globally, and that Netflix could win more than 300 million of these by 2028. Now, of course, we want to be great at both, but again, we're really pretty different from the pure tech companies. It's now forecasting 6.2 million for Q2 (compared to 5.2 million in Q2 2017).
Chief content officer Ted Sarandos said Netflix has shot original content in 17 countries as it focuses more on local programming, and that many of Netflix's foreign-language shows would be considered "big hits" on American cable channels, thanks to artful subtitling.
Another big subscriber beat for Netflix Inc. should put to rest any concerns about the company's growth trajectory, according to GBH Insights. Hastings said on an earnings call. "We disagree, given that the vast majority of Netflix's content (including the bulk of its "originals") is licensed; so long as that is true, Netflix's content spend is likely to grow in lock step with its revenue growth".
The company now has 125 million subscribers around the world, up from 117.6 million a year ago, and 56.7 million in the USA, where just shy of 2 million were added in the quarter. Netflix also credited new talent, such as Shonda Rhimes and Jenji Kohan, for their "proven track record of success" and for allowing Netflix to cut back "reliance on third-party studios".
Pacific trade pact wasn't meant to contain China: Bob Hormats
His Australian counterpart warns that there won't be a lot of interest in substantial renegotiation among the 11 countries in TPP. The trade deal becomes effective when ratified by six of the signatories.
Investors reacted positively to Netflix's subscriber gains and results by sending the company's shares up by more than 6 percent, to $327 a share in after-hours trading Monday.
Netflix has also jumped into movies in a serious way, and plans to release 80 original films in 2018. The stock was up 60 per cent this year at Monday's close in NY.
"I'm very glad we built a business not to be ad-supported but to be based on subscription", Hastings said in an indirect reference to Facebook's core business. "Topical interview shows, absolutely, but keep in mind, those are entertainment". Credit Suisse Group set a $224.00 price target on Netflix and gave the stock a neutral rating in a research report on Monday, January 8th.
"1Q result continues the strong subscriber trends from the last 6 quarters" and "importantly NFLX is doing it spending less than anticipated". The fact that Netflix earns less money from a bundled subscriber is offset by the fact that bundled members don't cancel as much.
With all this, Netflix now has almost 119 million paid streaming memberships - and it wasn't all that long when Netflix finally said just over two years ago that it would begin opening up in hundreds of new countries internationally.