Netflix added 1.09 million subscribers in the US, and 5.87 million internationally, bringing the total number of subscribers to 137 million. Netflix expects to add 28.9 million customers this year, setting a new record for the 21-year-old company.
"Netflix's strong quarter will at least temporarily put to rest questions over the long-term viability of its business and shift focus to the competition, which continues to significantly lag the streaming giant".
So long as Netflix is able to keep tapping the debt market and continuously stuffing its product with enticing new shows and films-neither of which is a given, by the way-the likelihood of its subscribers running to another service is probably low.
"In addition to our commercial success, we're ecstatic when the creators we work with are recognised for their inspiring work".
Netflix held its quarterly earnings report earlier this week, recording a record high number of subscribers, which assuredly made investors happy. The company has already said it will boost spending in 2019, but investors could get a better sense of just how much the streaming service plans to lay out and whether it will need to borrow again. Netflix said it signed up roughly 1.1 million subscribers in the United States, above analysts' estimate of 674,000, according to Refinitiv.
KeyBanc Capital Markets' Andy Hargreaves lowered his rating for Netflix shares to Sector Weight from Overweight, citing concerns over the company's long-term profitability.
"After handily blowing away Street expectations on subs in the last few years, this is a clear speed bump for Netflix as the worldwide miss was most concerning, given this is the linchpin to the core growth thesis for the coming years", GBH Insights technology analyst Daniel Ives said at the time, suggesting a "speed bump" rather than the start of a negative trend.
Hargreaves is less optimistic over the company's ability to raise its profit margins over the long term due to the company's fourth-quarter forecast for contribution profit, a measure of profitability. Netflix also bundled its Basic subscription plan to postpaid customers who spent more than Rs 1,299 per month.
New customers were lured in by returning seasons of "Orange is the New Black" and "Marvel's Luke Cage", as well as new shows such as "Ozark" and "Maniac", the limited series starring Emma Stone and Jonah Hill, Netflix said. While most of that still funds shows licensed from other companies, original programs account for a growing share. The epic drama is Netflix's first original series from India, the world's second-most-populous country.
Hastings, 58, suggested that he wasn't anxious about the competition.