How Netflix Plans To Continue Its Dominance Over The Streaming Market

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Netflix, Inc. (NFLX) is set to report their FQ2’18 earnings report Monday after the close. Estimize consensus projects an EPS of $0.81, a 438% YoY growth and once cent higher than Wall Street’s prediction. Estimize expects a revenue of $3.947B, a 42% YoY growth, while Wall Street anticipates a revenue of $3.936B.

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The company’s shares have doubled this year. Subscriber acquisition has been one of the leading indicators of company performance, and consumers are wondering if the company will be able to sustain the rate of customer acquisition that they have seen in recent quarters. The Estimize community expects to see total subscribers of 133M, a 28% YoY growth, and indicating an addition of 7.6M subscribers from last quarter. Netflix is trying to maintain its dominance over the streaming market by increasing its spending on original content – they plan on spending over $8B on developing new content this year. Netflix has also been testing an “Ultra” version in Italy and Germany that offers 4K streaming for a slightly higher price. Investors should also look out for guidance on international subscriber growth, as there still seems to be a huge opportunity there.

Disclosure: There can be no assurance that the information we considered is accurate or complete, nor can there be any assurance that our assumptions are correct.

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