![]() Let's talk about their spend because the billions of dollars that go out the door with regard to just creating some of those names that become household titles, whether in movies or series, what would we expect to hear on the original content spend from Netflix?ĪLEXANDRA CANAL: So Netflix has guided that they're planning to, once again, spend around $17 billion this year. So we'll have to see if that stock- upbeat stock can continue after earnings.īRAD SMITH: All right, you mentioned all of those key titles. And it's far outpacing the NASDAQ Composite's 0.5% gain on the year. So we could see some positive momentum there for both revenue and operating income.Īnd then finally, just take a look at the stock price because Netflix stock has been on a tear in recent weeks, recent months. However, that dollar has been weakening a bit. And real quickly, on the revenue front, we know that the strength of the US dollar has been a big pain point for Netflix. A subscriber beat would be a huge win here. They are really focused on profitability. So while those subscriber numbers, it's not the be-all, end-all anymore for investors. And we're going to see continued content improvements planned for this current quarter, as well. However, some analysts are upping and boosting those subscriber expectations, due to the fact that we saw some pretty solid content this quarter, record-breaking content from "Wednesday," "Glass Onion," "Troll," the list goes on. And that's something that Netflix has guided as well. And as you mentioned, Jared, those subscriber net additions, 4.5 million. Revenue expected to come in at $7.85 billion. Let's just go back to those numbers real quickly and what we're expecting from the Street. So perhaps we'll see some more color on that earnings call later this evening. However, we have received some third-party data that shows ad-supported subscribers make up about 12% to 15% of that global gross subscriber base. It's likely that we're not gonna see the full impact of those efforts in this quarter, especially since the ad tier just launched in 12 markets in November. However, analysts have told us that investors are gonna have to play the long game there. Investors are gonna want to see some updates on Netflix's profitability efforts, which does include their recently launched ad-supported tier along with a crackdown on password sharing. So Netflix is really gonna want to come into this with a position of strength. Because if we remember this place last year, 2022, we started the year with two straight quarters of subscriber decline. ALEXANDRA CANAL: Yes, and this is gonna be an important quarter for Netflix to really set the tone for this new year.
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