Streaming giants Netflix investors have insight into group books on Wednesday evening.
For the horror series "Stranger Things" Netflix is currently receiving great support, which can not be claimed by the latest quarterly online video service report. At least from an investor perspective, the figures are also to be scared, but in this case, that is all but a positive one. Though the weak development is the consequence of higher prices, it is very unfortunate. Right now, blow up the Hollywood Empire and the technological fortress in the Silicon Valley in search of a leading market leader.
These figures shocked shareholders: Netflix has won the lowest world line in three months by the end of June, adding only 2.7 million new subscriptions, which online video service announced on Wednesday after the US market closure in Los Gatos, California. In the US, Netflix even lost 130,000 users. Successful spoiled investors are not accustomed to that – a similar flop came last in 2011, when the company split the DVD distribution.
With numbers of users, Netflix has fallen below the expectations of Wall Street experts and also under its own prediction of five million new users. Overall, the giant that took place at the end of the quarter, thanks to the gains outside the domestic market, grew at least to slightly less than 152 million paid memberships.
Quite surprising, poor growth has not come: Netflix has delivered relatively few movie and serial hits in the last quarter, and has also risen in many countries – including in Germany – at a price. Expectations were, therefore, already attenuated, with so low growth of users, however, no one expected it. The company acknowledged particularly weak results in regions where subscriptions increased over the past quarter.
However, with regard to financial performance, business continued to function well: sales increased by 26 percent compared to the same period last year to $ 4.9 billion; profit of $ 270.7 million ($ 241.2 million) exceeded Wall Street forecasts. Brokers could not comfort them.
Real endurance test is Netflix, but it still comes: After fun giants like Walt Disney, who for years have been looking for a fast growth of vertical starter and lost more and more cable customers on television over the internet, now starts counterattack. Not only Disney, but also AT & T's WarnerMedia with their pay-TV HBO (Game of Thrones) and NBCUniversal have competing services in the pipeline.
The attack was hit twice by Netflix, because heavy athletes of the established entertainment industry not only have a lot of financial power but also the content they want. And many of them are running against Netflix license fees. But since Disney and Co are now launching their own online services, Marvel productions and other hits migrate to them. Netflix, for example, loses its two most successful American appearances to direct rivals, friends and office.
Still, the company is not badly positioned. Netflix has a huge production budget – only this year is expected to be worth $ 15 billion in exclusive content – and has a huge potential inside that is far from exhausted. Netflix has barely started fan-articles like Disney's superhero movies for their successful productions.
Even if HBO – especially thanks to the "Game of Thrones" closing season – Netflix clearly with a total of 137 nominations at this year's Emmy Award Ceremony, it should only be a snapshot. In the current quarter, Netflix has two super-hits in the race with new seasons Stranger Things and Orange is a new black, which could attract many new subscribers.
However, given the recent events, it is not surprising that Netflix has no plans to increase advertising revenue. The company is aware that the buyer may be the first to distract him. "We believe that we will have a more valuable job in the long run, because we will stay out of the competition for advertising revenue and instead compete fully for the audience's satisfaction," the letter writes to shareholders.
One thing is certain: in the flow market the air will soon become thinner. Because not only the fun giants from Hollywood want to open a Netflix hunt. Even the Silicon Valley technology companies and the Japanese iPhone Apple want to be involved in the booming business. In addition, there are existing partners such as Amazon and Hulu, which also show no signs of competitive fatigue.
That's what Netflix has
However, investors reacted nervously, temporarily shrinking shares by 13 percent in US after-hours trading. Netflix has raised prices in several countries and has already dampened expectations, but did not expect such a low growth in users. However, it should be noted that the stock price has increased by 35 percent over the year, so that it is a good opportunity to make a profit.
On Thursday, Netflix securities lose 10.20 percent on NASDAQ trading at $ 325.46.
LOS GATOS (awp international)