iWorld

Netflix CEO Reed Hastings on global opportunity, subscriber addition and competition

Hastings thinks the company’s net adds this year will be more than last year

Reed Hastings

MUMBAI: With Disney all set to enter the direct-to-consumer business with its streaming app, Netflix missing its subscriber addition forecast globally along with losing subscribers in the domestic market is likely to be trouble. Although stocks of the FANG company stumbled as an aftermath of the Q2 result, Netflix is confident of getting back on track in the next quarter. Talking to investors in an earnings call after the Q2 result, Netflix CEO Reed Hastings also showed confidence in global subscriber additions, upcoming competition and the positive impact of streaming war.

Here are the edited excerpts:

Global opportunity:

Well, we do wonder, in the fullness of time, can we be as big as YouTube? YouTube is 7x larger than us roughly in viewing hours, and a phenomenal service. Of course, it's free. So the real question is can we produce enough content that people are willing to pay for? If you look at benchmarks, it's about 700 million households that pay for television outside of China, so that would be kind of the equivalent of the US, 100 million, so that's one established market.

Now, do we have enough content in each of those countries? Most of that is local content that gets consumed. But the internet is capable of some very large customer bases, as you, I'm sure, know well. So we'll just take it year-by-year and try to have our net adds continue to grow. We still think our net adds this year will be larger than last year. We'll keep pushing on that. And what we want to do is just grow the net adds every year and then the future takes care of itself.

Streaming War:

It's never been a better world for talent. They get to bid themselves off between us, Disney, Amazon, etc. So there's a real battle for who will pay for content around the world, but it's not a zero-sum competition. I think everybody gets that people will subscribe to multiple shows. Add wage -- most Netflix employees are HBO subscribers. We love the content they do and that spurs us to want to be even better. So it's a great competition that helps grow the industry. And the advantage of having something catchy like streaming wars is it draws more attention. And because of that, people, consumers shift more quickly from linear TV to the streaming TV.

Product partnerships for Stranger Things:

Well, we're monetising it today in more membership growth. The focus is to get more people excited about Stranger Things. So they join Netflix. They tell their friends about it. So this year, we'll add about $5 billion of incremental subscription revenue, which is almost all of the gross margin, and that's faster than any entertainment company has grown in the history of the world. So what we want to do is keep that engine going, keep that subscriber engine going and not get distracted with alternative revenue sources which just don't add up when you're growing $5 billion a year. So the core focus is to create all these merchandising opportunities, tie-ins, touch points so that you feel the Stranger Things energy so that more people join. So together, as we do monetise all that, it's just we're monetising it through our giant engine rather than through little sidecar vehicles.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/10/dure.jpg?itok=VxVogvTK
Times Internet adds Durga Raghunath and Rohit Saran to leadership team

NEW DELHI: Times Internet has embarked on an ambitious plan to cater to users across the world. To strengthen this next chapter of user-centric transformation, the company has roped in Durga Raghunath and Rohit Saran to lead its largest base of users into the next generation of engagement and...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/10/honor.jpg?itok=ap7Fg7Es
HONOR collaborates with ZEE5 to reach Indian consumers for its latest smartphones

KOLKATA: The leading OTT platform ZEE5 continues to be a brand favourite, when it comes to reaching out to a diverse set of audiences across the country in the most targeted and effective manner. The newest one to join the bandwagon and choose ZEE5 as one of its preferred OTT advertising platforms...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/10/group.jpg?itok=Whm9Z6A_
OTT platforms may see scarcity in long-format premium content in H1- FY22

It may be the heyday of over-the-top (OTT) platforms but it’s not like the pandemic will not have any impact on their operations. While everything appears great on the surface, the constraints of shooting large-scale projects are going to affect the pipeline of long-format premium originals in the...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/08/all.jpg?itok=E4vJpyBp
OTT platforms proposing ombudsman model to the govt: Arre’s Ajay Chacko

To regulate or not to regulate online content, that's the question. If yes then what should be the way forward? There has been no industry consensus on it yet. While in the earlier part of this year, Hotstar, Jio, SonyLiv and Eros.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/07/ebay.jpg?itok=YjfoCmlE
eBay signs MoU with Uttar Pradesh govt for ‘One District One Product’ program

NEW DELHI:  eBay today signed an MoU with the government of Uttar Pradesh for its ‘One District One Product’ program. The MoU will enable MSMEs in Uttar Pradesh to leverage eBay’s cross border platform and sell internationally across 190 countries. As part of the MoU, eBay will not only promote...

iWorld e-commerce
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/07/netflix.jpg?itok=2t4qVCVP
Netflix goes more local, launches Hindi UI

KOLKATA: Netflix, the world’s leading streaming entertainment service, today launched its user interface in Hindi. This enables Netflix members who prefer Hindi to easily discover, access and enjoy their favourite Indian and international films and series. The complete Netflix experience in Hindi,...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/07/idna.jpg?itok=JG608oDA
India Today suspends print publication Mail Today; turns digital

NEW DELHI: Most newspapers in India are facing an uphill task to maintain their readership amidst the pandemic. India Today too faced the burn. The group announced that its English language tabloid Mail Today will suspend its print publication with effect from 10 August 2020. The reason stated is...

iWorld eNews
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/07/twitter.jpg?itok=1JWzAxWC
Twitter announces new labels for government, state-affiliated media accounts

NEW DELHI: Twitter has announced that the micro-blogging site has started labelling accounts of government officials and state-affiliated media. The blog read that it will focus on labelling ‘Senior officials and entities who are the official voice of the state abroad.’ For the time being, this...

iWorld Social Media
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/07/tiktok.jpg?itok=w0WziBbx
US imposes ban on TikTok and WeChat

NEW DELHI: US President Donald Trump has announced that social media apps TikTok and WeChat are barred from operating in the US starting 20 September if they are not sold by their Chinese-owned parent companies. The video-sharing app TikTok has come under the lens of US lawmakers over national...

iWorld Social Media

Sign up for our Newsletter

subscribe for latest stories

* indicates required