Nope, we don't want sports — Netflix
- Author: Zachary Reyes Apr 25, 2017,
Apr 25, 2017, 10:16
Netflix concluded March with nearly 48 million users outside the U.S.
Netflix, an American entertainment company is on the verge of hitting 100 million subscribers, an evidence to how much the video streaming service has differed the entertainment landscape from the time it was introduced. As for the competition, Netflix isn't phased by the advent of virtual MVPDs such as Sling, PlayStation Vue, DirecTV Now, YouTube TV, and Hulu's forthcoming service. The company reiterated that it expects to burn $2 billion of cash in 2017 and stated "we anticipate negative FCF to accompany our rapid growth for many years".
Over the past decade, "what really did it for Netflix was the explosion of phones and tablets that allowed people to watch video everywhere", said Wedbush Securities analyst Michael Pachter. However, Netflix clearly has faith in its on prowess. However, investors have been closely watching for signs of a slowdown in growth as the company reaches almost 100 million subscribers. "We have come to see these quarterly variances as mostly noise in the long-term growth trend and adoption of internet TV", he added.
The world's biggest paid video service signed 4.95 million new customers last quarter, less than the 5.49 million analysts were expecting.
Indeed, the company noted that the U.S. and other established markets have been funding worldwide expansion for several years.
"Additionally, investors ask us about Amazon's move into NFL football". The company is moving most of its production to California, investing billions more.
Netflix isn't too anxious about competition from fellow streaming services. Amazon, meanwhile, will reach more than 85 million USA viewers this year, or 44 percent of OTT viewers.
The firm increased revenues by over a third to $2.64bn for the quarter compared to the first three months of a year ago, while net income rose to $178m from $28m. For the entire second quarter, it expects to add 3.2 million subscribers overall, boosting its global total to almost 102 million. "That is not a strategy that we think is smart for us since we believe we can earn more viewing and satisfaction from spending that money on movies and TV shows". New seasons of popular shows have traditionally helped Netflix add more subscribers than new licensed content, Cantor Fitzgerald pointed out in a note on Tuesday morning.