The focus on bottom-line performance means streaming companies like Netflix. – CNBC's Lillian Rizzo contributed to this article. large customer base that could shoulder out competitors, he said. And it didn't even need to switch trains.ĭisclosure: Comcast's NBCUniversal is the parent company of CNBC. That's more a symptom of profit taking after Netflix's big gains this year (up more than 62% as of Wednesday's close) than anything to be angry about in its initial quarterly numbers.Īfter a precipitous fall last year, the company is back on track. "The lack of references to video games in its shareholder's letter suggests advertising is the shiny object that most commands the company's focus," said Ross Benes, an analyst at research firm Insider Intelligence. Netflix has a steady pipeline of international content and a deep library to weather an extended writers and actors strike. Why? Because unlike the rest of the media industry, Netflix doesn't need a new narrative. This quarter's shareholder letter barely even addresses video games. The company said revenue will accelerate in the second half of the year as it sees "the full benefits" of its password-sharing crackdown and steady growth in its ad-supported plan. Next quarter, Netflix forecast subscriber gains will be about 6 million again. That means Netflix will actually have even more cash than it previously expected. Previously, the company had estimated it would have $3.5 billion, but the actors and writers strikes will cut down on content spend. Meanwhile, Netflix boosted its free cash flow estimate to $5 billion for the year. Paramount Global and Comcast 's NBCUniversal both said 2023 will be the biggest annual loss ever for their streaming businesses. Both companies have laid off thousands of employees over the past 12 months to boost free cash flow. Discovery have spent the year slashing content from its streaming services to avoid paying residuals and saving on licensing fees. This is not the story for the rest of the media industry. Netflix added 1.2 million subscribers in the United States and Canada in the quarter - its largest regional quarterly gain since 2021. They seek to personalize as much as possible and disclose that 80 percent of consumption on the streaming video service comes from recommendations (Gomez-Uribe and Hunt 2016). According to Business Insider Australia, Netflix believes its personalized recommendation engine is worth big bucks roughly 1 billion per year, in fact. Despite more competition, Netflix still ha2 the largest subscriber count in 2022. Netflix added 5.9 million subscribers in the quarter, a sign that its two primary 2023 initiatives - cracking down on password sharing and launching a cheaper $6.99 per month advertising tier - are bringing in new subscribers. Netflix presents itself as a data-driven organization wherein recommendation is a key part of our their business. Here are 50+ Netflix stats and facts that reveal just how big Netflix has become. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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