Netflix’s Successful Reversal
Netflix’s Successful Reversal, Netflix has long been the top dog in the world of online streaming, but it faced some tough competition this year.
Topics
Despite the struggle
Competition
14% after Q3 earnings
The Return of Netflix
Despite the struggle
They’ve managed to turn things around and regain their title as the most prominent video streaming service.
This is partly thanks to their recent launch of a cheaper version of their service that includes ads.
This has helped them attract new subscribers while maintaining their existing customer base.
With 223 million subscribers now on board, Netflix is once again in a solid position to continue dominating the online streaming market.
Competition
Amazon Prime Video has continued to grow its subscriber base thanks to the success of its original programming.
This includes shows like The Marvelous Mrs Maisel and more, which have been huge hits with viewers around the world.
Amazon is also continuing to invest in its live sports offerings, helping attract even more subscribers to its Prime Video service.
With around 150 million subscribers, Amazon is well-placed to challenge Netflix for the top spot in the years to come.
Hulu on the other hand is owned by a consortium of media companies including Disney, Comcast, and Time Warner.
Hulu has been going from strength to strength in recent years, thanks in part to the success of its original programming, this includes shows like The Handmaid’s Tale and The Path, which have been huge hits with viewers and critics alike.
Hulu is also expanding its live TV offering, which is helping to attract even more subscribers to its service,
with around 25 million subscribers, Hulu is a distant third place behind Netflix and Amazon,
but it is still a major player in the online streaming market.
Apple TV+ is the new kid on the block when it comes to online streaming.
They launched in November 2019 with a small selection of original programming, including shows like The Morning Show and See,
Apple is investing heavily in original content, and it is expected to launch a new slate of shows and movies in 2020.
With around 10 million subscribers, Apple TV+ is off to a strong start,
but it has a long way to go to catch up to the likes of Netflix and Amazon.
14% after Q3 earnings
Netflix is on the rise, and its latest earnings report proves it.
The online-video service posted a 5.9% increase in revenue to $7.9 billion,
but higher operating costs meant its net income shrunk by 3.5% to $1.4 billion.
Analysts polled by Refinitiv had expected $7.8 billion and $959 million respectively.
In the third quarter, the video-streaming giant exceeded Wall Street’s revenue and earnings expectations.
Netflix increased its subscriber base by 2.4 million after losing 1.2 million in the first half of this year.
After a couple of quarters of decline, the company posted strong growth in both revenue and subscribers.
This bodes well for the future of the company and its shareholders;
investors would be wise to keep an eye on Netflix as it continues to grow its business.
The stock is up 14% premarket, but there could be more upside potential as Netflix executes on its growth strategy.
Despite the lower-than-expected profit, Netflix’s stock rose 4% in after-hours trading as investors responded to
the company’s strong subscriber growth both domestically and internationally.
In the fourth quarter, Netflix added 886,000 subscribers in the US and 9 million globally.
The Return of Netflix
“Thank God we’re done with shrinking quarters,” co-CEO Reed Hastings remarked during Netflix’s earnings call on Tuesday,
indicating that the company may be able to compete with Disney Plus, Apple TV, HBO Max, and other services,
however, worries remain about how effective Netflix’s planned rollout of an ad-supported content tier will be,
as well as whether the firm will be able to crack down on password sharing.
Everyone has had a difficult few months since the epidemic has kept us all home and made us tighten our belts.
However, things appear to be improving for streaming behemoth Netflix.
CEO Reed Hastings said yesterday on their results call that they had finally returned to growth after three-quarters of decline.
This is a tremendous relief for everyone who has come to rely on streaming services for pleasure.
However, several obstacles remain, such as limiting password sharing and properly launching their new ad-supported content tier.
But, overall, it appears like things are returning to normal, and we can all sigh of relief…at least until the next crisis strikes!