logologologologo
  • Home
  • Business
  • Markets
  • Exchange
  • Investment
  • Personal Finance

Netflix sheds 1 million users in Q2

Netflix (NFLX) lost nearly 1 million subscribers in Q2 — but that’s actually a net positive, according to one media analyst.

“This is a good report,” Santosh Rao, head of research at Manhattan Venture Partners, told following the company’s highly anticipated second quarter earnings results, which showed subscriber losses come in narrower-than-expected (-970,000 versus the estimated -2 million.)

Rao said “the game has changed” when it comes to the streaming landscape, noting “we cannot compare [subscriber numbers] to the past — things are different.”

Netflix, which lost 200,000 users in April, has battled an uptick in subscriber churn amid increased competition, with some industry watchers warning that a “streaming recession” is on the horizon.

Netflix co-CEO Reed Hastings admitted on the earnings call that “it’s tough losing a million [subscribers] and calling it a success,” but he reiterated that the company is “set up really well for the next year.”

Still, Netflix revealed softer Q3 subscriber guidance, anticipating 1 million net additions for the current quarter — below Wall Street’s consensus estimate of 1.9 million.

Q3 revenue guidance also came in lighter than expected at $7.84 billion versus the estimated $8.1 billion as the broader subscriber slowdown, in addition to increased foreign exchange pressures, weigh on sales.

Despite those macroeconomic challenges, Rao noted that the subscriber frenzy will eventually settle “and the big winners will come ahead.”

He predicted that Netflix will remain the longstanding leader of the pack given its strong global footprint, in addition to the company’s potential to generate revenue through both its crackdown on password sharing, as well as its upcoming ad-supported offering which should “bear fruit” down the line.

Generally, Wall Street is bullish that an ad tier could be the answer to at least some of Netflix’s problems.

The platform, which revealed last week that it’s partnered with Microsoft (MSFT) to help launch the new ad-based tier, updated its timeline on when consumers can expect it to hit the market.

Netflix now anticipates to debut the ad-based offering in the early part of 2023, adding that it will “likely start in a handful of markets where advertising spend is significant…our intention is to roll it out, listen and learn, and iterate quickly to improve the offering.”

On the earnings call, Netflix’s leadership team said they’re taking an “innovation-oriented view” when it comes to ads, saying they plan to provide an “incredible” experience to consumers, brands, and advertisers alike.

As for the selection of Microsoft, Netflix COO and chief product officer Greg Peters said bluntly, “We picked Microsoft as our ads partner because we think they’re going to be great as an ads partner.”

He added that the two companies plan to “work together, collaborate and evolve the technical capacity” of the ad experience — citing flexibility as a key component of the partnership.

Moving forward, Rao said that international markets will be key for growth, adding that Netflix needs to continue to execute, control costs, and deliver premium content like “Stranger Things.”

The Duffer Brothers’ production broke the record for Netflix’s biggest ever premiere weekend, in addition to earning the highest viewership among all English-language Netflix seasons, with 930.3 million hours viewed in its first 28 days and 1.3 billion hours viewed in its first four weeks.

“The main thing is to have the high engagement level and stickiness — they have that across genres and across demographic groups,” Rao explained.

Ultimately, “it’s their market share to lose — everybody wants to be Netflix.”

 

Related posts

March 24, 2023

TikTok CEO fails to convince Congress app is safe


Read more

Categories

  • Business
  • Content
  • Crypto
  • Exchange
  • Inflation
  • Investment
  • Markets
  • Personal Finance
  • Technology
  • Uncategorized

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021

Recent Posts

  • TikTok CEO fails to convince Congress app is safe
  • Deutsche Bank and UBS shares hit as banking fears keep tight grip
  • SEC sues Tron founder Justin Sun, Lindsay Lohan, other celebrities over crypto sales
  • Employees are checked out at work more than at any time in history — and it makes no difference if they work from home or not. Here’s why
  • Rolls-Royce ‘Wraith Black Arrow’ marks end of V12 coupe era

About Us

The Alpha Cut a Vida Street LLC Company
1404 N. Ronald Reagan Blvd.
Suite 1120
Longwood, FL 32750

Link

(843) 256-4375
https://thealphacut.com

Why Us

Terms & Privacy
Policy & Procedure
Disclaimer

This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only.
Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.
All data in this communication is provided for informational purposes only and is not intended for trading or investing purposes. We expressly disclaim the accuracy, adequacy, or completeness of any data and content provided by financial exchanges, individual issuers, their respective affiliates and business partners and shall not be liable for any errors, omissions or other defects in, delays or interruptions in such data, or for any actions taken in reliance thereon. You agree not to copy, modify, reformat, download, store, reproduce, reprocess, transmit or redistribute any data or information found herein or use any such data or information in a commercial enterprise without obtaining our prior written consent.
We make no express or implied warranties or representations and shall have no liability whatsoever with respect to any data contained herein. The data may not be further redistributed or used to create indices or other financial products. This report and the views expressed herein are subject to change at any time based upon market or other conditions (such as domestic and global economic trends) and are current as of the date of publication hereof. The information, analysis, and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual or entity.
We emphasize that Investment in the securities of smaller companies can involve greater risk than is generally associated with investment in larger, more established companies, and can result in significant capital losses that may have a detrimental effect on the value of your investments.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth.As with any structuring of a portfolio of investments, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
The information, analysis and opinions expressed herein are for general, impersonal information only and are not intended to provide specific advice or recommendations for any individual entity.

copyright © Alpha Cut 2021. All Right Reserved
The Alpha Cut a Vida Street LLC Company