Netflix soars on report subscriber complete


At the same time, Netflix faces competition from deep-pocketed companies such as Amazon and new streaming services from Walt Disney Co and AT&T Inc that are expected late next year.

Revenue from "over-the-top" video services such as YouTube, Netflix and others reached Rs 2,020 crore in 2017, according to a PricewaterhouseCoopers report. Netflix is trying to slough off a subscriber growth slump that is causing some analysts from Goldman Sachs and Raymond James to slash their 12-month price targets for the stock. Berkeley Capital Partners LLC increased its position in Netflix by 17.3% during the second quarter. The shares are up 80 per cent this year.

Netflix regained its stride with surprisingly strong subscriber growth in the third quarter, after an unexpected springtime stumble triggered fears that it was losing its allure.

That news broke a streak of five straight quarters in which subscriber growth exceeded expectations.

Hargreaves is less optimistic over the company's ability to raise its profit margins over the long term due to the company's fourth-quarter forecast for contribution profit, a measure of profitability. Netflix's revenue for the quarter was up 40.3% compared to the same quarter a year ago. The sales number was right on the money with estimates, but earnings were well ahead of the anticipated 68 cents per share. It increased, as 56 investors sold Netflix, Inc. shares while 300 reduced holdings.

"Our own original shows tend to be more valuable than licensing someone else's shows in later windows", said Netflix's chief content officer, Ted Sarandos. Netflix signed up 6.96 million customers in the quarter, according to a statement on Tuesday (Oct 16), boosting its global total to 137.1 million.

Netflix officials predict the company will add another 9.4 million viewers by the end of this year.

Netflix is now the most expensive video streaming service in India, with monthly subscription plans starting at Rs 500, more than double of its rivals in India.

Netflix added almost seven million new customers in the three months to September, bringing its total to more than 137 million members worldwide.

Net profit for the quarter more than tripled compared to the same period a year ago, from $130m to $403m, while revenues were up by 34% to $4bn.

Netflix has been borrowing heavily to fund such rapid growth in TV shows and movies. Its biggest worldwide competitor, Amazon, has taken a much different route, pricing its Prime subscription at Rs. 129 per month or Rs. 999 per year.

Netflix also announced that it plans on spending $1bn on producing new content over the next 10 years, bolstered by a new production hub to open in the New Mexico city of Albuquerque.