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/2017/09/18/Bengt%20Jonsson%20and%20Pallavi%20Puri.jpg?itok=pTULRoal
Tata Sky and Irdeto tie up, OTT service launched on Android devices

MUMBAI: India’s pay TV market is highly competitive, yet there is tremendous growth potential for OTT services as disposable incomes rise. According to Tetra Pax Index 2017, 82 per cent of the Indian population spends its time on mobile phones, and 2017 saw a 23 per cent rise in internet users who...

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/17/baskarsub800x800_0.jpg?itok=qGxttIec
“Competition in OTT solutions is what makes it exciting:" Amagi's Baskar Subramanian

Like previous years, Amagi is exhibiting at the global broadcast and OTT ecosystem confab, IBC, in Amsterdam. Among the tech solutions it is showcasing at the exhibition include: Cloudport channel Playout, Thunderstorm OTT Ad insertion, and Storm TV localization.

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/16/Vijay_Sajja-Ajay_Kumar_Meher.jpg?itok=KEK4TWOg
SonyLiv can monetise content bundles better using Evergent solution

MUMBAI: Evergent will now empower SPNI to onboard new customers for SonyLiv and monetise live sports. ts comprehensive revenue and user lifecycle management platform supports identity, entitlements, product catalogue and payments across two major media platforms and multiple devices.

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/16/Sonia_Prashar-Richard_Lim-Amit_Mittal-Eddie_Udagawa_2.jpg?itok=dlzNb0IH
Infotainment tech DaVinci Resolve 14, Cinema EOS C200 etc. to be showcased at BIS next month

MUMBAI: The paradigm shifts in infotainment technology across the globe has lead technology seekers to connect with the innovators and experience the marvels first-hand.

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/12/Aron_Jaszberenyi-Harrie_Tholen_0.jpg?itok=FQ0UNOha
Zee, Sony and Disney tech providers NexGuard, Colorfront collaborate to ensure distributors stay ahead of pirates

MUMBAI: NexGuard and Colorfront have released key updates to their joint solution, adding support for multi-layer watermarking workflows and enhanced scalability and automation of forensic watermarking.

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/09/set-top-box.jpg?itok=QZdZKiHJ
Govt steps helping APEJ STB market, global sales may expand at 7.5pc CAGR

MUMBAI: Owing to increase in penetration of television and TV services within rural areas as well as urban areas, the set-top box market will receive a boost all across the APEJ region. Disposable incomes are on a rise in India and China, and this is helping the set-top box (STB) market turnover to...

Technology Hardware Set-top Boxes
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/07/Ramki_Sankaranarayanan.jpg?itok=SHux3qER
How broadcasters and studios can harness ERP, innovative tech to run content biz

MUMBAI: India's Prime Focus, which was in news in connection with the leak of an upcoming episode of 'Game of Thrones' to be broadcast by its partner Star India's Hotstar, recently signed technology deals with prominent traditional and digital broadcasters. Now, its technology arm Prime Focus...

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/31/KP_Sreekumar-Guido_Meardi.jpg?itok=3ssk-I4E
STBs, VoDs & IPTV will soon have high-end TV content via Tata-V-Nova tech

MUMBAI: V-Nova Ltd., a leading provider of video compression solutions, and Tata Elxsi, a leading provider of specialised broadcast and communications engineering services, have announced a partnership that enables operators to deploy V-Nova Perseus technology at an accelerated pace.

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/29/Untitled-1.jpg?itok=1DQUPGYK
Fox-Samsung to licence metadata for HDR to content cos & STB makers

MUMBAI: 20th Century Fox, the parent company of Star India, Panasonic Corporation and Samsung Electronics have announced a new partnership to create an open, royalty-free dynamic metadata platform for High Dynamic Range (HDR) through an associated certification and logo program, tentatively called...

Technology Hardware Set-top Boxes

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories