Netflix slightly trimmed its forecast for subscriber growth, saying it expected the count to be up 26.7 million at the end of this year, but that its positive outlook for the future remained firm.
Needless to say, Netflix feels confident about the next few years.
"In some ways Netflix has defied the naysayers in Q3, coming close enough to guidance and delivering impressive revenue and earnings growth", Macquarie analysts said. The company is projecting 7.6 million global net adds for the fourth quarter, compared to 8.8 million in the same quarter one year earlier.More news: Pelosi Gives Her Side of the Story From 'Meltdown' Meeting With Trump
As weve improved the variety, diversity and quality of our content slate, member engagement has grown, revenue has increased, and were able to further fund our content investment, said Netflix in its October 16 shareholder letter.
Netflix said it would spend about $15 billion in cash on content this year, with the majority of that money devoted to producing original shows. Not just its competition, but the competition of all streaming services. Also, Netflix Originals like Stranger Things, Explained, Narcos, Nailed It, Mindhunter and new limited series like Unbelievable.
This quarter is also a miss for Netflix, although just a couple hundred thousand from their initial 7 million new subs goal.
Shares in video-streaming service Netflix rose last night, after the company announced its latest financial results.More news: Tarzan actor Ron Ely’s wife and son killed in California
Netflix is not concerned about the arrival of Disney+ and HBO Max.
"To date, we have globally released 100 seasons of local language, original scripted series from 17 countries and have plans for over 130 more in 2020", the company's earnings report read. While more competitors are entering the streaming market, Netflix is focusing on its unique selling proposition and doing what it does well, not getting as hung up about the competition as others seem to be. The company warned the launch of these new services will be "noisy" and it could generate "modest headwinds" in the near term.
The point being that as Hulu does't operate in Canada, and in spite of its 30 million US subscribers, it is not necessarily a Netflix competitor.
In the week leading up to the earnings report, Netflixs stock value inched up, but it has not changed dramatically since being reported yesterday.More news: Kate Middleton and Prince William's plane FORCED to emergency land during storm