Netflix reveals its viewing figures for the first time
Jan 20 2019
The service now has 139 million subscribers globally. The turnover of 4.2 billion dollars, an increase of 27 percent compared to the previous year, was minimal under the forecasts of analysts.
The company earlier this week raised prices for US subscribers from $1 to $2 per month depending on high-definition level and will be phased into all customers this year. The Company expects to add another 8.9 million new subscribers the next year quarter, growing 24.6% year over year. One obvious solution is to increase the price of a monthly subscription, something Netflix did just a few days ago.
"Management is taking a cautious tone", said Geetha Ranganathan, an analyst at Bloomberg Intelligence.
After streaming giant Netflix came under fire for including footage of a real-life, deadly incident that occurred in Canada in its breakout monster movie Bird Box, the company said yesterday it will not pull that imagery from the film. The company's long-term programming budget stood at $19.3 billion at year end, up from $18.6 billion three months earlier.
"In the USA, we earn about 10 percent of television screen time", Netflix announced in its shareholder letter, "and less than that of mobile screen time".
The firm also revealed that it will be creating more interactive projects such as Black Mirror: Bandersnatch in the future and if you ask us this is what will really help Netflix set itself apart from the plethora of streaming services available.
Netflix's operating margin shrank in the quarter, because of the heavy load of titles released. The company also said that "You", a new thriller TV series, was watched by more than 40 million members in its first four weeks. The company also called out the successes of content overseas from Turkey and the United Kingdom.
Pachter said with $2 billion of annual free-cash-flow growth, Netflix will have to pay back $11 billion and finish that by 2023, with a $7 billion free-cash-flow rate.
"We deeply regret that this happened and sincerely apologise to anyone who was offended, especially the victims and their families", the company said.
The report comes as several studios near the completion of their own streaming platforms, including Disney and NBC, which will see content disappearing from Netflix in the coming months. The company believes that worldwide markets will one day account for as much as 90 percent of its customer base. As many as 45 million accounts streamed the movie in the first week alone, which set a new record for the company.
Netflix says the funds from the increased pricing will be used for its original content and further accelerate revenue and overall growth.
"We sincerely apologize and had no intention to dishonor the tragic events of 2013", Mudd said.