"When we were growing fast, it wasn't a high priority to work on," Hastings said of account-sharing in remarks during Netflix's investor video. Now, it appears the culprit is a combination of competition and the number of accounts sharing passwords, making it harder to grow. Hastings told investors that the pandemic had "created a lot of noise," making it difficult for the company to interpret the surge and ebb of its subscription business over the last two years. The downdraft caught other video streaming-related stocks, with Roku (ROKU.O) dropping over 6%, Walt Disney (DIS.N) falling 5% and Warner Bros Discovery (WBD.O) down 3.5%. Wall Street targeted 227 million for the second quarter, according to Refinitiv data. Netflix offered a gloomy prediction for the spring quarter, forecasting it would lose 2 million subscribers, despite the return of such hotly anticipated series as "Stranger Things" and "Ozark" and the debut of the film "The Grey Man," starring Chris Evans and Ryan Gosling. "But, as much as I'm a fan of that, I'm a bigger fan of consumer choice." "Those who have followed Netflix know that I've been against the complexity of advertising, and a big fan of the simplicity of subscription," said Netflix CEO Reed Hastings. ![]() Disney+ had a massive first year (87 million paid subscribers!) we recorded the biggest year of paid membership growth in our history.The lagging subscriber growth is prompting Netflix to contemplate offering a lower-priced version of the service with advertising, citing the success of similar offerings from rivals HBO Max and Disney+. This past year is a testament to this approach. “Our strategy is simple: if we can continue to improve Netflix every day to better delight our members, we can be their first choice for streaming entertainment. “This signifies that these companies all recognize the future is streaming entertainment, a vision we have been working towards since inception,” the letter explains. Netflix also addressed the rise of new competitors like Disney+, plus less successful services like Apple TV+, HBO Max, and NBC Peacock. “We’re confident we’ll continue to have a great content offering for our members,” the letter notes. The service plans to release at least one new original film every week in 2021. Netflix also reports that its original content production companies are “back up and running in most regions,” and that it has over 500 titles currently in post-production or ready to launch. ![]() ![]() And its biggest film was The Midnight Sky, starring and directed by George Clooney, with about 72 million views in just its first four weeks. The Queen’s Gambit was the biggest limited series in Netflix history, with over 62 million views in its first 28 days. Netflix says that The Crown was its biggest series success of 2020, with over 100 million viewers since the first season debuted. It ended the quarter with 203.3 million paying subscribers, with a year-over-year growth rate of 22 percent. “For the full year, we added a record 37 paid memberships, achieved $25 billion in annual revenue (+24 percent year over year) and grew operating profit 76 percent to $4.6 billion.”įor the quarter ending December 31, 2020, Netflix posted a net income of $542 million on revenues of $6.6 billion. “With 8.5 paid net additions in, we crossed the 200 paid memberships mark,” Netflix revealed in a letter to shareholders. ![]() As part of its latest quarterly earnings report, Netflix announced this week that it has surpassed the 200 million active user milestone.
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