Masterpieces such as "The Three Body Problem" helped Netflix deliver hot financial reports, but the management team personally created significant negative news
小婴弄瓦接
发表于 2024-4-19 19:11:31
1308
0
0
Earlier on Friday, global film and entertainment giant Netflix released its quarterly report as of the end of March. Holding an excellent financial report in all aspects, the management of Netflix personally stepped forward, creating a significant negative impact on investors.
As of press release, Netflix fell nearly 6% before Friday trading.
(Source: TradeView)
It should have been a happy financial reporting season
From all aspects, Netflix has completed a commercially successful first quarter. The company achieved revenue of $9.3 billion and net profit of $2.3 billion, with a year-on-year increase of 60% in earnings per share of $5.28, both of which far exceeded market expectations.
(Source: Netflix Financial Report)
The most exciting thing for the market is that Netflix welcomed 9.3 million new subscribers in the first quarter, almost double Wall Street's expectations, with a record high of 269.6 million subscribers at the end of the quarter.
There are multiple factors supporting this achievement. Firstly, Netflix continued to release several popular works that attracted global user attention in the first quarter - Q1 reports showed that the crime biographical mini series "Griselda" received 66.4 million views (note: Netflix's statistics refer to the total viewing time within 91 days after release divided by the length of the series), "The Three Body Problem" released at the end of March received 39.7 million views, and "Avatar: The Last Airbender" received 68.3 million views.
In addition, Netflix's multiple works produced locally in the UK, South Korea, and Spain have also performed well in terms of viewing data.
At the same time, the change in Netflix's business strategy has also driven more users to switch to paying. Since last year, Netflix has taken measures to crack down on the practice of sharing accounts, with the company estimating that 100 million people are using someone else's Netflix account. The company is also launching a subscription level that offers lower fees but requires viewing advertisements, encouraging more "free" users to start paying.
However, just after the hot financial report was released, the management of Netflix announced that it will stop disclosing its total number of subscribers starting from the first quarter of 2025. For investors in the streaming media industry, this has also been the core indicator determining the rise and fall of companies in the past few years.
Why did you suddenly make adjustments
Netflix also stated in its performance forecast that it will maintain a similar revenue growth rate in the second quarter of this year, but the net growth of subscribers will slow down.
Regarding the cessation of public subscription numbers, the company explained that the focus will shift to user engagement, which is the time spent by subscribers on the service. At the same time, new pricing points and revenue sources will also be developed, including advertising.
During the financial report conference call, Greg Peters, co-CEO of Netflix, attempted to explain that the impact of each incremental member on the business is different, which means that the simple mathematical problem of multiplying the number of members by subscription fees in the past is increasingly unable to accurately reflect the situation of the business. Greg also promised investors that the company will regularly update the number of subscribers when it reaches major milestones in the future.
Regarding this change, PP Foresight analyst Paolo Pescatore stated that the company's decision to stop publicly disclosing the number of subscribers will not receive positive feedback. Paolo believes that no matter how Netflix tries to shift the focus of the market from the number of subscribers to financial data, the net growth of subscribers remains a key indicator that everyone wants to see.
Ross Benes, senior analyst at eMarketer, also believes that the measure to stop publishing subscribers can allow Netflix to take advantage of its position as the "world champion in subscription numbers". Benes said that Netflix is emphasizing things that are beneficial to them, and the growth brought about by cracking down on shared accounts will eventually decline. It will be very difficult for the company to continue adding new users like in the past few quarters.
Various signs indicate that in recent months, Netflix has also been taking continuous actions, attempting to increase profits by expanding or even changing its business model. The company has recently started investing heavily in live streaming, sports, and gaming, purchasing content from other suppliers, and has transitioned from ad free subscription services to a streaming platform supported by advertising.
In February of this year, the Netflix platform broadcasted the Screen Actors Guild Awards ceremony, marking the first attempt of this kind by the platform. In addition, in January this year, Netflix also announced with WWE that it had obtained exclusive rights to the live broadcast of WWE Raw, with a total ten-year contract value exceeding 5 billion US dollars.
In the gaming industry, the introduction of Rockstar Games' "Grand Theft Auto Remastered Trilogy" by the Netflix platform at the end of last year sparked market discussions. This has brought some surprises to this business direction that has been questioned by investors.
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
猜你喜欢
- Canada Goose announces layoffs of approximately 17% and significant management adjustments
- Is Nvidia's pullback of over 10% causing concern? Bank of America supports: falling is for better gains!
- A bearish raid! Big Dive in US Stocks! A large amount of profitable funds seem to be fleeing
- Can AI, combined with Wu Yongming's repeated mention of "full site promotion", become a new engine for Taobao's growth?
- Announcing price increases and gaining support from major clients. TSMC's market value once exceeded $1 trillion
- Tianjing Biotechnology management welcomes another 'major overhaul': the shadow of CD47 target failure still lingers in the innovation pipeline with only three remaining CD47 targets
- Fresh Early Technology | Ma Huateng Returns to China's Richest Man; Three sheep have been investigated; Amazon management begins layoffs
- Meta reportedly invests heavily to invite Hollywood stars to help with new AI products
- Under the support of industrial policies, Xiaoma Zhixing and Wenyuan Zhixing have been granted registration, and high-level autonomous driving is accelerating towards commercialization and landing
- Musk once again supports Trump: The Federal Reserve should obey the President!
-
知名做空机构香橼研究(Citron Research)周四(11月21日)在社交媒体平台X上发布消息称,该公司已决定做空“比特币大户”微策略(Microstrategy)这家公司,并认为该公司已经将自己变身成为一家比特币投资基金 ...
- caffycat
- 9 小时前
- 支持
- 反对
- 回复
- 收藏
-
每经AI快讯,11月20日,文远知行宣布旗下自动驾驶环卫车S6与无人扫路机S1分别在新加坡滨海湾海岸大道与滨海艺术中心正式投入运营。据介绍,这是新加坡首个商业化运营的自动驾驶环卫项目。 ...
- star8699
- 前天 19:48
- 支持
- 反对
- 回复
- 收藏
-
上证报中国证券网讯(记者王子霖)11月20日,斗鱼发布2024年第三季度未经审计的财务报告。本季度斗鱼依托丰富的游戏内容生态,充分发挥主播资源和新业务潜力,持续为用户提供高质量的直播内容及游戏服务,进一步 ...
- goodfriendboy
- 前天 20:09
- 支持
- 反对
- 回复
- 收藏
-
人民网北京11月22日电 (记者栗翘楚、任妍)2024广州车展,在新能源汽车占据“半壁江山”的同时,正加速向智能网联新能源汽车全面过渡,随着“端到端”成为新宠,智能驾驶解决方案成为本届广州车展各大车企竞 ...
- 3233340
- 3 小时前
- 支持
- 反对
- 回复
- 收藏