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$NFLX said investment in new content will likely be raised in 2019 and 2020 from the $8Bil target set for the current year. With feature films becoming an important aspect of the service, Netflix intends to invest more in original films, ensuring the right mix of small and medium budget projects. There will also be a hike in marketing expenditure.
$NFLX attributed its impressive financial performance in recent quarters to experimentation, such as projects outside the core business, and having experts on board. The company plans to continue to invest in shows around the world in 1Q18. According to Netflix, the subscription growth in 4Q17 was driven mainly by new content with a global appeal.
Reflecting the rapid expansion of $NFLX’s market share outside the US, International Streaming revenue surged 64% YoY to $1.55Bil in 4Q17. Domestic Streaming revenue grew 16% to $1.63Bil. Revenue from the Domestic DVD business was $105MM in the fourth quarter, down 17% compared to the same period last year.
The subscriber base of video streaming giant $NFLX expanded at a record pace in 4Q17, driving strong revenue growth. Despite the recent hike in prices, more than eight million new customers joined Netflix. Revenues surged 33% to $3.3Bil and earnings more than doubled to $0.41 per share, exceeding market expectations. The stock hit an all-time high.
$NFLX has promoted Jessica Neal to the post of Chief Talent Officer. Neal began her career with Netflix in 2006 when the video streaming business was at a nascent stage. She left the company in 2013 to become head of human resources at Coursera. Neal returned to Netflix in early 2017 to oversee HR for the product engineering team.
$CMCSA, that faces tough competition from online streaming services like $NFLX, saw its profit grow in 3Q17 despite reporting the largest quarterly loss of 125,000 cable television subscribers. Net income rose to 18.5% to $2.65Bil, or $0.55 per share, while revenue slipped 2% to $21Bil during the quarter.
$NFLX has announced its plan to offer $1.6Bil aggregate principal amount of senior notes through a private offering. The company intends to use the net proceeds from the offering for general corporate purposes such as content acquisition, production and capital expenditures.
$NFLX is on course to release some of its ambitious shows in 4Q17, including new seasons of popular franchises Stranger Things and The Crown. On the efforts to forge partnership with airline companies for inflight streaming, the company said it expects to launch the service next year. The total Investment in content for 2018 is forecast at $7-8Bil.
Referring to the acquisition of Millarworld, $NFLX said it is on track to diversify business with focus on intellectual property and other content assets, but in a selective and opportunistic manner. Netflix attributed the strong membership additions primarily to widespread adoption of internet TV and its attractive content mix.
$NFLX, which has released the third quarter results, is looking forward to bring more investments in content and technology to improve operations. The focus is on evolving the product mix further for meeting the needs of the ‘next’ 100-200 million members, so that it will be as compelling to them as it is to the existing 100-million members.
Contributing significantly to $NFLX’s overall top line growth in 3Q17, domestic streaming revenue advanced 19% to $1.55Bil. Revenue from international streaming service climbed 56% YoY to $1.33Bil during the quarter. Meanwhile, there was a 17% decrease in revenue generated the domestic DVD business.
An expanding subscription base, supported by strong demand for original content, pushed up $NFLX’s revenues to about $3Bil in 3Q17. Earnings of the video streaming giant remained unaffected by price hikes and the recent Disney showdown, and surged 150% to $130MM. Overall streaming revenue rose 33%, helped mainly by an increase in paid memberships.
$AAPL Special Event 2017: Apple TV gets an automatic free upgrade to 4K HDR. Apple said it is working with $NFLX to bring their 4K titles to its service, as well as $AMZN's Amazon Prime Video. A new 4K Apple TV starts at $179 for 32GB model and $199 for 64GB model. Orders start on Sept 15, 2017 and ships from Sept 22, 2017.
$DIS said it will launch its ESPN-branded multi-sport video streaming service in early 2018, followed by a new Disney-branded direct-to-consumer streaming service in 2019. With this, $DIS will end its distribution agreement with $NFLX for subscription streaming of new releases, beginning with the CY19 theatrical slate.