iWorld

Analysts express mixed views on Netflix Q2 growth

Many of the analysts believe India could be strength for the company in Q2 growth.

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2018/07/16/netflix.jpg?itok=jeuOWvvr

MUMBAI: Given the ferocity of Netflix's growth, a Forbes report had predicted its impressive Q1 2018 result to continue in Q2 as well. In first quarter 2018, Netflix exceeded user addition forecasts along with a 43 per cent year over year growth. Forbes predicted growth in revenue and subscribers in Q2 too. In addition to that, the report says it could report revenues of around $3.9 billion. The result for Q2 is supposed to release on 16 July.

The previous quarter’s growth was fuelled by continued strong acquisition trends across the globe. Netflix attributed it to “the growing breadth of our content and the worldwide adoption of internet entertainment.” The international subscriber base of the over-the-top (OTT) platform increased at a rapid pace (42 per cent y-o-y).

Repeating the same trend in Q2, the report anticipates that the total subscriber base for both international and US streaming services could grow to over 130 million during the quarter. Netflix itself expects 6.2 million global net addition in Q2.On the contrary, Deutsche Bank told the OTT platform could miss Wall Street’s second-quarter subscriber expectations next week. “We don't see 2Q earnings as a positive catalyst for the stock; in fact, we see some near term downside risk,” said analyst Bryan Kraft as quoted by CNBC.  Following the prediction, company's stock fell more than four percent Friday.

Despite that, Swinburne, a strong believer in Netflix’s growth, thinks Netflix is increasing its “competitive moat” against competitors. “On top of the ability to use data to improve its programming and marketing decisions, Netflix now brings to market a content offering that boasts $16 billion in net content value,” Swinburne wrote as quoted by Variety.

“As a result, other than live sports and news, we see the potential for Netflix to not just take share from other networks or channels, but to represent ‘TV’ for many households,” it added.

Many of the analysts believe India could be strength for the company in Q2 growth. Netflix is scaling up its business in India and planning more original content after already releasing Sacred Games. However, in the Indian market, Netflix has to face stiff competition from local platforms like Hotstar, Voot, ALTBalaji, along with tough challenge from its international rival Amazon.

With its $8 billion expense plan for content, it is definitely outperforming Hulu, Amazon in the domestic market.

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/18/Airtel_Telenor.jpg?itok=f6rKpPLr
Airtel-Telenor to expand home broadband to 2 mn

Airtel’s acquisition of Telenor will provide the broadband business a boost. As India is an under-served market in broadband, the company is planning to expand its home pass footprint to 2 million in FY19.

iWorld Broadband
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/17/zee5.jpg?itok=d_UVE_B0
ZEE5 launches Lockdown with Badshah, Kailash Kher, Raftaar, Jonita Gandhi and many more

ZEE5, India’s largest and most comprehensive digitalentertainment platform for language content, today launchedLockdown – a path-breaking concept in collaboration with renowned rapper and composerBadshah.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/17/JIO_4G.jpg?itok=5kFd_t5k
Broadband on cable fibre declining?

Is broadband on cable fibre on the decline in India? Results over the past few quarters of some of the multisystem operators or MSOs seem to indicate just that. Mukesh Dhirubhai Ambani’s largest start up in the world Reliance Jio Infocom Ltd (JIO) is the one of the biggest upheavals that has...

iWorld Broadband
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/16/netflix.jpg?itok=Q-ezEpg3
India’s ranking falls in latest Netflix ISP speed index

The streaming giant releases a monthly update on which ISPs provide the best primetime Netflix streaming experience.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/16/MX_Player_800.jpg?itok=abnyc8JG
MX Player's content play for OTT platform launch

In the last two years, India’s media and entertainment industry has witnessed the emergence of several over-the-top (OTT) players. With an ambition to gain a foothold in the burgeoning OTT space, Times Internet recently acquired a majority stake in Seoul-based MX Player. While the company is yet...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/15/Amazon_India.jpg?itok=YdqHxAe_
Amazon scaling up investment for Indian marketplace biz

E-commerce giant Amazon has invested additional Rs 2,700 crore for its Indian marketplace unit at a time when it continues to battle its local rival Flipkart along with investing about Rs 100 crore for food retail business in India, according to a report from Mint.

iWorld e-commerce
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/14/zee5.jpg?itok=lW1J0Csx
ZEE5 presents “Lal Bahadur Shastri’s death – An unfinished story” India’s biggest cover-up

ZEE5, India’s largest and most comprehensive digital entertainment platform for language contentannounce the launch of “Lal Bahadur Shastri's Death - An Unfinished Story

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/14/hoooq.jpg?itok=lnz1uCy1
What's New on HOOQ

HOOQ, Southeast Asia’s largest video on demand service reveals its content line up for the next three months (August – October). Get ready for an exciting three months filled with fresh blockbusters, classic comedies and same-day as U.S. Telecast series.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/14/laliga.jpg?itok=eKsOLf20
Laliga lands on facebook in indian subcontinent

In a first-of-a-kind agreement, LaLiga and Facebook today announced that the platform will become the official home for all LaLiga Santander matches in the Indian subcontinent.

iWorld Over The Top Services

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories