![]() And we’re really focused on making sure that the impact of the slate continues to grow. “Most important though is the impact of the slate. “We will continue to grow the content spend relative to prior years,” Sarandos said. Netflix execs previously said the streamer intends to spend around $18 billion on content this year, a figure Sarandos stood behind Tuesday, though CFO Spencer Neumann cautioned Netflix will be “smart and prudent in terms of pulling back on some of that spend growth to reflect the realities of the revenue growth of the business.” NETFLIX ACTIVE USERS PASSWORDHastings also pointed to how cracking down on password sharing will help Netflix bring in subscribers it technically already has as users: “They love the service, we’ve just got to get paid.” So we’ve got to figure out these different models that we’re doing now to more effectively monetize that viewing.”Ĭo-CEO Reed Hastings said Netflix is currently exploring launching lower-cost, ad-supported streaming plan options, something the streaming mogul has long been against. Now, we talked about being highly penetrated in some of those core markets with users, which means that it’s harder to get them to join Netflix if they are already using Netflix. “That’s what we’re really focused on and that’s a thing we can continue to grow the business in. ![]() NETFLIX ACTIVE USERS SERIES“We’ve got to compete, and we’ve got to continue to improve on the core service which is making TV series and films and now games that people really love,” co-CEO and chief content officer Ted Sarandos said during the company’s pre-recorded earnings presentation, which was posted after the financial data was released Tuesday. In after-hours trading, the stock fell more than 25% following Netflix’s Q1 subscriber loss reveal and projections for deeper loss in Q2. Netflix stock closed Tuesday at $348.42 per share. NETFLIX ACTIVE USERS FREEWith the higher number of net adds in his model, Cahall also expects Netflix to report first-quarter earnings per share of $2.92, from $2.91.Click here to sign up for Variety‘s free Strictly Business newsletter covering earnings, financial and investment news, and more. In fact, we think many investors would like to see how H1 net adds actually come in.” “We don’t feel as if anyone else does either, so this is a Wait & See quarter with investors likely resetting afterwards rather than doing much into the print. “We don’t feel as if we have a good handle on the Q2 outlook,” Cahall said in a note Sunday. Though bullish about the first quarter, Cahall is less certain about Q2 and is eager to see what Netflix’s guidance will be.Īlso: Netflix Adds Double Thumbs-Up to Content Recommendation Game “We are below sell-side consensus on paid net member additions near-term, but we think buy-side expectations are more muted, and that APAC could surprise owing to the mobile-first gaming strategy in this mobile-first viewing region.” “We remain above consensus on as we see continued optimization of content spending driving top-line growth, while the total rate of spending eases,” Salmon said in a note last week. He also lowered his target price for Netflix shares to $640 from $650.Īlso: Top Netflix Execs Reed Hastings, Ted Sarandos Got Less Pay in 2021 Salmon also slightly lowered his forecasts for Netflix revenue and operating income. Salmon sees Netflix reporting only 1.76 million net added subscribers, down from an earlier estimate of 2.48 million. ![]() ![]() Netflix closed at $341.13 on Friday.ĭaniel Salmon of BMO Capital Markets, who also has a buy recommendation on Netflix stock, is less optimistic about Q1. Cahall is recommending investors buy (overweight) Netflix stock and has set a target price of $600. ![]()
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