Technology

Netflix Q2 net earnings fall 91% to $6 mn

MUMBAI: US internet subscription service for movies and TV shows, Netflix, has reported a fiscal second quarter net earnings of $6.1 million compared $68.2 million a year ago.


Revenue grew by 12 per cent to $889 million. Profit was $6 million compared to a loss of $5 million in the first quarter.


Netflix added 600,000 international subscribers in the second quarter, boosting its international subscription base to 3.6 million.


Gross margin narrowed to 27.6 per cent from 37.8 per cent. The company spent more on marketing as costs rose to $118.2 million from $94.9 million a year earlier. The company has warned that the Olympics will have a negative impact on business. It expects to add between 1 to 1.8 million new subscribers in this period.


The company letter to investors states, "For Q3 quarter-to-date, our domestic net additions are very nearly the same as Q3 2010 over the comparable partial period. In that quarter two years ago, we finished with 1.8 million domestic net additions. However, in the middle of that quarter, we launched Netflix on the iPhone to great reception, and we don’t have an equivalent launch this quarter. Moreover, this quarter the Olympics are likely to have a negative impact on Netflix viewing and sign-ups. So, our Q3 guidance is 1 million to 1.8 million domestic net adds. If we finish Q3 in the high end of that range, we would remain on track for 7 million domestic net additions for the year; otherwise it would be challenging to achieve that goal by year end. In either case, we are generating impressive growth this year in our most developed market."


Talking about competition it said, "We have yet to see HuluPlus or Amazon Prime Instant Video gain meaningful traction relative to our viewing hours, but as we continue to build a domestic profit stream they are likely to increase their efforts to gain viewing share."


Netflix plans to launch in a new market abroad in the fourth quarter which will cause a loss. "Our highly profitable US business, both streaming and DVD, is funding our international expansion. We believe this is the right long-term approach. In Q3, we expect to be profitable, while with the launch of a fourth international market in Q4, we will move to a consolidated loss."


The unsatisfactory subscriber growth and a muddied outlook for the rest of the year scared investors. The challenge for Netflix is that content owners are asking for more money while Netflix charges customers $8 per month.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/28/Lorne-Brown-Ryan-Reed-and-Anne-Schelle_1.jpg?itok=1-yJEc7D
SintecMedia & Lotame bring dynamic audience targeting to broadcast TV

MUMBAI: SintecMedia and Lotame have announced plans for an integration that will deliver audience segments from the Lotame DMP directly to SintecMedia's frontend proposal system, OnBoard. SintecMedia is the preferred broadcast management for linear and digital, and a software partner for over 300...

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/14/apec_0.jpg?itok=F4q4QkOl
A-Pac the biggest market for SOIs, to flourish by 2024

Silicon on Insulator (SOI) caters to the demand of the electronic industry, and thus the market will increase and expand with the varied demands in the electronics domain. The electronic boom in the industry has caused a surge in consumer electronics such as digital cameras, television, gaming...

Technology Hardware Components
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/12/anthony%20%281%29.jpg?itok=1_onx3pu
B'casters' easing ATSC 3.0 transition: Artel, Qligent integrate

Real-time, multimedia delivery solutions company Artel has partnered cloud-based, enterprise-level media analysis specialist Qligent to help broadcasters ease the transition to ATSC 3.0.

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/29/Convergence_0.jpg?itok=YbX2BAHO
Convergence: Sinclair Broadcast co ties up with India's Saankhya

MUMBAI: ONE Media 3.0, a wholly-owned subsidiary of Sinclair Broadcast Group, Inc. has announced an agreement with Saankhya Labs, a leader in the development of Cognitive Software Defined Radio (SDR) chips, to accelerate the development of ATSC 3.0 (the Next Generation standard) chipsets.

Technology Hardware Components
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/28/Siemens-Sumitomo_1.jpg?itok=5cxUHrJ7
Siemens & Sumitomo win US$ 520m Pugalur-Trichur HVDC and cable VSC order

MUMBAI: A consortium between Siemens and Sumitomo Electric Industries Ltd. has been awarded an HVDC order from Indian transmission operator Power Grid Corporation of India to supply a high-voltage direct current (HVDC) transmission system.

Technology Hardware Components
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/25/Sanjay%20Sethi-800x800.jpg?itok=8Yt0QcPi
Electronic Manufacturing Cluster in Au'bad gets govt nod

NEW DELHI: The the first Brownfield Electronic Manufacturing Cluster (EMC) in Aurangabad under the Electronic Manufacturing Clusters (EMC) scheme has received final approval from the Electronics and Information Technology Ministry. India Electronics and Semiconductor Association (IESA), the premier...

Technology Hardware Components
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/23/stb%20%281%29.jpg?itok=pU2kNGZD
Indian and Chinese companies tie up for pre-integrated VAS Ready STB

Technology company specializing in digital media Corpus and Chinese digital products supplier Jiuzhou are to offer an STB solution bundled with Value Added Services (VAS) applications to enable operators monetize their digital investments and achieve faster ROI and profitability.

Technology Hardware Set-top Boxes
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/21/qw%20%281%29.jpg?itok=xNbG4zeg
Spectranet video delivery optimised through Qwilt

Broadband Internet Service Provider Spectranet has chosen content delivery and open caching solutions provider Qwilt’s award-winning open caching solution to optimise over-the-top (OTT) video delivery and improve Quality of Experience (QoE) for its subscribers.

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/17/camron-o-nil.jpg?itok=isUPKsXu
Adore partners Riedel solution

MUMBAI: In its continuing quest to provide broadcasters with traditional and new media solutions, systems integrator Adore Technologies Singapore has selected Riedel's Artist digital matrix intercom solution for Accenture's state-of-the- art webcast facility in Gurgaon, India.

Technology Software Applications

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories