Netflix is counting on a rebound on Wednesday.
Continue Reading Below
The streaming giant will release its third-quarter earnings after the close of the market and all eyes will be focused on its subscriber numbers. Last quarter for the first time in eight years, Netflix posted a quarter-to-quarter loss of 126,000 paying U.S customers.
For years Netflix was the only game in town but consumers have other choices — Amazon Prime, CBS All Access and Hulu — with several more on the way from tech and media titans alike.
A recent study by Deloitte indicates that there is still room to grow for Netflix. The consulting firm reported that 65 percent of U.S. households still have not cut the cord and subscribe to a cable/satellite/pay TV service and that 29 percent also pay for a streaming service.
Netflix is anticipating to announce global growth of seven million new subscribers.
But how much longer that room for growth will last is in doubt.
Within the next six months, Apple+ from the makers of iPhone, Disney+ from Hollywood’s biggest grossing studio, Peacock from America’s largest cable operator Comcast and AT&T’s Warner Media with HBO Max will all launch new, content-rich streaming services. Tuesday an unexpected player also joined the fray — AMC Theaters.
|AMC||AMC ENTERTAINMENT HOLDINGS INC||9.17||+0.22||+2.46%|
Netflix’s stock is down more than 22 percent since its last earnings release. However, it is up a little over six percent year to date. The more eye-popping numbers are the streamer’s content costs. This year, Netflix is slated to spend $15 billion.
The changing landscape and the increased competition is not lost on Netflix CEO Reed Hastings. At last month’s Royal Television Society conference in Cambridge, England, Hastings noted, “While we’ve been competing with many people in the last decade, it’s a whole new world starting in November.”