12/19/2023 0 Comments Gotta kick it up full movieSIDE NOTE: With the sizable younger audiences that AMAZON PRIME has brought to the NFL (see updates in the AMAZON item below), NETFLIX’s also likely much younger audience could steal some real $$ from Broadcast & Cable (over time) if this grows to be a meaningful size of subscribers. Will not be a meaningful addition to Revenue in Q4 as it’s essentially launching mid quarter. NETFLIX really does not expect many current subs to downgrade to the Ad-tier (except for newsletter folks named Sean).ĭoesn’t sound like they’re really gonna publicize this new $7 option, which they see as mostly an opportunity to bring in new new folks… and/or as a solve for piracy (giving folks who use other people’s accounts - whom they call “borrowers” btw, how cute - a more attractive option to get their own account). Individual countries are not officially broken out in any region to give more color to the number. In fact Revenue has fallen in the region for the past 2 quarters (again coinciding with a price cut in INDIA) adding subscribers in countries where the price of the service is low in some big regions here (INDIA namely) This is down about $1 in 6 months, and the strong dollar is less here to blame vs. #USA!USA!ĪRPU: $8.58 (again down, but mostly due to strong US dollar) NOTE: This region still only brings in about 2/3s of US Revenue, despite it now having more subscribers. The Ad-tier launch could very well change that and cause a dip soon, more likely Q1 2023 than the upcoming Q4.ĪRPU: $10.81 (2nd quarter of decline due to strong dollar) This has grown pretty much every quarter… ever. DOLLAR DOLLAR BILLS YA’LLīumped down to the #2 region for the 1st time. Overall Net Income (profit): $1.4 BillionĪnd as NETFLIX reminded people in their Earnings letter ( twice) - they’re on track to be $5+ Billion in the black this year, while all major streaming competitors are on track to be $10 Billion in the red. +2.4 Million (1.4 Million above expectations)įree Cash Flow (ie money that can be used to invest in things, or pay off debt - kinda extra play money in a crude sense): $472 Million Which is a long-term systemic issue.Īnd… that’s probably about it really. Specifically - the Majority of subscriber growth (over 50%) is still coming from APAC (Asia Pacific), where #ARPU is still going down - but not really due to the strong dollar (though that is a factor), but more due to the low $$ amount you can get away with charging for a streaming service in some big countries there. So even though subscribers are still growing in global regions - actual Revenue is hitting challenges (albeit relatively temporary). The strong dollar is lowering #ARPU (Avg Revenue Per User) in LATAM and EUROPE/EME… just as EMEA surpasses US / CAN in subscriber numbers. However that’s when the Ad-tier launches this year - so any direct comps will be tough, and basically the Ad-tier can’t come soon enough here to see if there’s more US / CAN maple syrup to squeeze at the $7 price point (What? We can’t give CAN an analogy every now and then?).Ħ3% of US adults in a Harris Poll this month said cost was the deciding factor in choosing a streaming service. Last Q4 they grew 1.2 Million in US / CAN, so this will really be the true test. NETFLIX is essentially back to where it was 2 years ago in this region. US / CAN growth really looks to be stalled out, +100k (now at 73.39 Million) Wall Street agreed last night, putting the stock +14%. Any way you cut it… this was a positive quarter.
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