![]() ![]() It launched paid password sharing last year and during the earnings call it said that it has now rolled out the service to over 100 markets which account for more than 80% of its revenues. Last year, Netflix started cracking down on password sharing and said that according to its estimates, 100 million households watch its content through borrowed passwords. Building an ads business from scratch isn’t easy and we have lots of hard work ahead, but we’re confident that over time we can develop advertising into a multi-billion dollar incremental revenue stream.” NFLX expands password sharing crackdown The intent is to shift the customers to either the ad-supported tier or higher-priced plans.Īccording to Netflix, “While we continue to grow our reach-ads plan membership has nearly doubled since Q1- it’s still off a small membership base, so current ad revenue isn’t material for Netflix. It is however phasing out the Basic ad-free plan from the US and UK for new customers. Netflix did not provide the number of subscribers for the ad-supported tier. Among others, markets were spooked by a lack of specific commentary on the ad-supported tier and password crackdown. Netflix stock fell sharply yesterday and is lower in early price action today also. We remain focused on: creating a steady drumbeat of must watch shows and movies improving monetization growing the enjoyment of our games and investing to improve our service for members.” Netflix’s stock fell after the earnings In its shareholder letter, Netflix said, “While we’ve made steady progress this year, we have more work to do to reaccelerate our growth. In the corresponding quarter last year, it lost almost 1 million subscribers. The company added 5.9 million subscribers in the quarter. Its per-share earnings of $3.29 however came in ahead of the $2.86 that analysts were expecting. Netflix reported revenues of $8.19 billion in the quarter which trailed analysts’ estimate of $8.30 billion. Here’s how analysts reacted to Netflix’s earnings and the key takeaways from the report. Streaming giant Netflix (NYSE: NFLX) reported its Q2 earnings earlier this week. The content on this page is for information purposes only. Please note that we are not authorised to provide any investment advice. ![]()
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