Netflix beats Wall Street expectations and competes with Disney for attention
Although Disney’s launch of streaming services has been widely echoed, Netflix still looks like an old god.
This is after the fierce competition in the streaming media market, Netflix once again publicly reported earnings. According to the data, Netflix currently has more than 148 million users worldwide and has increased by 9.6 million in the past three months, exceeding Wall Street’s expectations of 8.9 million. And also published a new user experience attempt, will first launch a content leaderboard in the UK.
Netflix’s performance last season was quite eye-catching, not only revenue revenue, but also a significant increase in the number of users. However, earnings per share for the quarter was only 55 cents, well below analysts’ forecast of $1 per share, and revenue was $4.93 billion, still slightly worse than the expected $4.96 billion. However, investors still paid a lot of money. The stock price rose by nearly 3% on the day. Although it fell after the market, it immediately rebounded. It has already rebounded more than half by the impact of Disney.
(Source: Google Finance)
Regardless of the quality of the content, Disney’s monthly fee is indeed lower than Netflix, which is receiving considerable attention from the market, and Netflix said that even if the user ran to subscribe to Disney, it would not cancel Netflix. According to research, US consumers may be willing to subscribe to nearly 6 different channels at the same time. Although Netflix is quite confident about the competition between Disney and Apple, it is considered that these new competitors will not cause too much impact, but from the perspective of its prospects, it is not so optimistic.
At present, Netflix monthly fee is gradually rising. It is expected that the revenue will have a good result this year, but the cost of original content is still quite oppressive for the financial report. Free cash flow in the first quarter of 2019 was $460 million, nearly double the amount in the same period last year. In addition to Disney, Apple has not yet opened the cards, but its spending on original content is expected to be nearly $1 billion. The official said that there are still many fixed asset expenditures this year, and it is expected that the cash flow will not improve until next year.
Of course, if you don’t save money, you will have good content, but the market will be more difficult and inevitable. It is expected that Netflix will go deeper to evaluate and understand the psychology of the audience to create content that is more in line with consumer interest. Chief Content Officer Ted Sarandos said in an interview that he hopes to make the audience more transparent.