iWorld

Netflix adds record 9.6 mn subs in Q1 2019

The company reported lower guidance for the second quarter.

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2019/04/17/netflex.jpg?itok=6L5Hzrqc

MUMBAI: Streaming giant Netflix beat analyst estimates in its first quarter earnings and added record number of subscribers. The streaming platform reported paid net additions of 9.6 million in Q1 2019, up 16 per cent year-on-year (y-o-y). In terms of revenue also, it reported $4.52 billion in revenue in the quarter, higher than projected.

The subscriber growth includes 1.74 million from the domestic market and 7.86 million internationally against 1.61 million and 7.31 million estimates respectively. Its revenue rose 22.2 per cent y-o-y, reporting $4.52 billion compared with $3.7 billion a year earlier. Earnings per share climbed to 76 cents in the quarter from 64 cents in Q1 2018.

However, Netflix shares fell after market closing due to its low guidance for the next quarter. The company has projected total net adds of 5 million with 0.3 million in the US and 4.7 million for the international segment, down 8 per cent y-o-y.  

“We’re working our way through a series of price increases in the US, Brazil, Mexico and parts of Europe. The response in the US so far is as we expected and is tracking similarly to what we saw in Canada following our Q4’18 increase, where our gross additions are unaffected, and we see some modest short-term churn effect as members consent to the price change,” Netflix stated in its letter to shareholders.

The platform is also hoping for an eventful second half of the year in terms of global content as it is bringing new seasons of its biggest hits including Stranger Things, 13 Reasons Why, Orange is the New Black, The Crown and La Casa de Papel. It will also release big films like Michael Bay’s Six Underground and Martin Scorsese’s The Irishman. On the back of its content slate, Netflix expects another year of record paid subscriber addition.

Recently, Apple and Disney unveiled their streaming services in the market which has been seen as a tough challenge for Netflix. Moreover, the rich content library and cheaper pricing of Disney+ has raised questions for Netflix monopoly in digital entertainment. But the company seems unfazed by the entry of two giant rivals and is “excited to compete”.

“We don’t anticipate that these new entrants will materially affect our growth because the transition from linear to on-demand entertainment is so massive and because of the differing nature of our content offerings. We believe we’ll all continue to grow as we each invest more in content and improve our service and as consumers continue to migrate away from linear viewing,” Netflix said.

The company expects 2019 free cash flow deficit to be modestly higher at approximately -$3.5 billion due to higher cash taxes related to the change in their corporate structure and additional investments in real estate and other infrastructure. But it is still expecting free cash flow to improve in 2020 and each year thereafter, driven by growing member base, revenues and operating margins.

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/05/22/broadband.jpg?itok=LDeNgn4Q
Broadband internet subscriber rate picked up in March 2019

India added 1.307 crore (13.07 million, 103.7 lakh) subscribers in the month ended 31 March 2019 (Mar-19, month or period under review) according to Telecom Regulatory Authority of India (TRAI) telecom subscription data. This translates to 2.37 percent growth as compared to 1.90 percent growth (1....

iWorld Broadband
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/05/22/Siddharth_Anand_Kumar.jpg?itok=I3zLh-Yk
Saregama Yoodlee Films’ Siddharth Anand Kumar on digital content strategy, theatrical releases & more

Saregama’s Yoodlee Films is betting big on content-driven films by collaborating with over-the-top (OTT) platforms. While the production house is streaming six of its films on Netflix, it has also struck a deal with another leading platform, Hotstar.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/05/21/zee43.jpg?itok=RupSozeD
ZEE5 launches tamil original web series ‘Thiravam’

ZEE5, India’s fastest growing OTT platform premieres Thiravam, a political thriller which revolves around the life of a small-time scientist who claims to have invented a herbal fuel that will revolutionize the petroleum industry, thereby posing a threat to dominant oil-rich countries. Starring...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/05/21/airetl.jpg?itok=xTQjXPrp
Airtel and Shemaroo launch ‘The Horror TV’, - a subscription service for Horror, Thriller and Crime content on TV

Airtel Digital TV, the DTH arm of Bharti Airtel, and Shemaroo Entertainment, India’s leading content house, today launched ‘The Horror TV – Ab Lagega Darr’ – a subscription premium service offering a variety of horror movies, TV shows and web series.

iWorld e-commerce
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/05/21/vodafone.jpg?itok=bjz1BAoy
Vodafone Idea and Hyundai AutoEver India (HAEI) sign exclusive partnership for Connected Car Services with Hyundai Blue Link Technology

Vodafone Idea, India’s leading telecom service provider and Hyundai AutoEver India, a subsidiary of Hyundai Motor Group has signed exclusive partnership for the India debut of Blue Link Connected Technology with the recently launched Hyundai VENUE - India’s First Smart Connected SUV for a range of...

iWorld Telecom
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/05/20/facebook.jpg?itok=oScHhZ3E
Political parties spent Rs. 53 crore on digital platforms: Facebook ad library

There is no denying the fact that digital media has remained one of the strongest tools used by the political giants to woo the voters this election season.

iWorld Social Media
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/05/20/vishal.jpg?itok=LNf_4l3g
Viu and Keshet International sign a two show deal for Indian audience

Viu, a leading OTT video service by PCCW, announces its alliance with Keshet International, the global production and distribution arm of Israeli media company, Keshet Media Group, for a two-show deal.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/05/18/pri.jpg?itok=iGlicica
Netflix names Priyanka Chaudhari as head of in-house Indian IP vertical

Netflix has made a new Indian hire as it gets serious about Indian content. Priyanka Chaudhari has joined Netflix India as a director and senior counsel – IP. In her role, she will handle IP, trademark and content issues. She will be reporting to the team in Los Angeles.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/05/17/netflix.jpg?itok=V37kXJ5k
7% Netflix viewers may cancel subscription after Disney+ launch

After dominating the digital entertainment space for the last few years, Netflix’s reign is now being challenged by upcoming Disney+.

iWorld Over The Top Services

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories