Netflix could surpass 100 million subscribers by the end of this week

Andrew Cummings
April 22, 2017

Netflix, an American entertainment company is on the verge of hitting 100 million subscribers, an evidence to how much the video streaming service has differed the entertainment landscape from the time it was introduced. Breaking that total down, the OTT video market leader picked up 1.42 million subscribers in the United States and the other 3.53 million customers internationally, raising its totals in those regions to 50.85 million and 47.89 million, respectively.

In a letter to shareholders to accompany its first quarter 2017 results, Netflix dismissed quarterly variances in customer sign-ups as "mostly noise" in the long-term growth and uptake of internet TV.

"The thing is, everybody watches TV, and almost everybody has the Internet", Netflix CEO Reed Hastings said during the company's first-quarter 2017 earnings webcast.

Los Gatos, the company in California has a current market value as $US63 billion.

Q2 subscriber growth guidance (international): 2.6 million, versus Wall Street forecasts 2.1 million. HBO takes pride in having 134 million subscribers at the global level, covering viewers paying for an internet-only variant of the channel that was sparked by Netflix's success.


He downplayed competition, saying "entertainment is not a zerosum game" and that it is more about winning fans with content. Netflix so far has answered the challenge by spending heavily on original shows such as "Stranger Things" and "House of Cards" and selling its service at a relatively low price. "It's a good start".

It added that its marketing spend would be ramped up, with more that US$1bn alone being spent on advertising its content.

Netflix stock was down roughly 4% in the immediate aftermath of the earnings announcement, but rebounded and was up 1.4% in after hours trading on Monday.

"We definitely have YouTube envy", Hastings said.

Netflix said Dave Chappelle: Collection 1, comprising two original stand-up performances from the comedian was its most-viewed comedy special ever.


"We've said previously subsequent seasons of show that are very popular tend to have more impact on the business than introducing brand new IP [intellectual property]", explained Netflix Chief Content Officer Ted Sarandos during the webcast. FBR & Co restated a market perform rating and set a $100.00 price target on shares of Netflix in a research note on Tuesday, January 17th. It lost some long-time USA subscribers after their rates went up by as much as $2 per month previous year. There are now 44.5 million paid worldwide subscribers, which represents 48% of total subscriber base. That doesn't cover the entirety of the negative FCF - with other portions categorized as pertaining to "small and growing operating margins" - but it does make up a significant portion of the negative flow.

The company said first-quarter profit more than quadrupled to $178 million, or 40 cents a share, compared with analysts' predictions of 37 cents.

This means the streaming company is paying virtually no tax outside of the USA, where it made a taxable profit of $606 million from revenues of $1.47 billion.

Stay on topic - This helps keep the thread focused on the discussion at hand. When you look at Facebook's, multi-billion numbers.

Be Civil - It's OK to have a difference in opinion but there's no need to be a jerk.


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