Netflix on the verge of hitting 100 million subscribers
- Author: Ernesto Newman Apr 22, 2017,
Apr 22, 2017, 0:56
Dwelling on the subscriber guidance, the analyst said the company's domestic subscriber guidance of 0.6 million was ahead of his estimate of 0.21 million and the consensus estimate of 0.19 million.
Netflix has released its earnings for the year with the company stating that it hit 98.75 million memberships at the end of 2016. Netflix said in a letter to investors variance in subscriber numbers could be attributed to "noise" in the adoption of internet TV. That's still almost double the $0.09 per share Netflix reported in the second quarter of 2016.
Netflix is preparing to celebrate signing up the 100 millionth subscriber to its online video streaming service, suggesting that people are more interested in watching TV shows and movies than in streaming music, according to an Atlanta Journal Constitution report.
For example, its show House of Cards, which was debuted past year in first quarter, was shifted to second quarter, which is the reason for their lower-than-expected subscriber growth. In Q2, Netflix expects to earn $1.14 billion from global streaming and will incur a $28 million loss. While Wall Street estimated to add 364,000 in the USA and 2 million internationally.
The streaming company made the pledge as it revealed its worldwide business registered a profit for the first time on the back of revenues that hit the $1 billion mark. Wetherby Asset Management Inc. now owns 5,979 shares of the Internet television network's stock worth $740,000 after buying an additional 32 shares during the last quarter.
He downplayed competition, saying "entertainment is not a zero-sum game" and it is more about winning fans with content in the on-demand viewing market. "We have YouTube envy", Hastings joked.
Shares of Netflix (NFLX) were lower in on Tuesday, the day after the streaming company reported lighter-than-expected net subscriber additions for the 2017 first quarter and downbeat guidance for second quarter earnings.
The company described the opportunity for its service as "gigantic" and said it planned to continue investing in films and shows tailored to win fans in countries around the world.
However, user growth is a more important metric for a growth company like Netflix.
Aggressive marketing is still a huge part of Netflix's expenditure - $1bn expected this year - so it shows those new subscribers really aren't coming easy.