After a disappointing second quarter, Netflix is again in Wall Road’s good graces. The corporate simply launched its third-quarter earnings report, and as of 5:30pm East Coast time, the inventory is up 12 p.c in after-hours buying and selling.
An important quantity right here is subscriber development, and that’s the place Netflix got here in approach forward of expectations, with 6.96 million internet additions, in comparison with the 5.07 million that analysts predicted. The service now has a complete of 137 million members, and 130 million paying members.
The corporate additionally reported earnings of 89 cents per share on income of $four billion — analysts had predicted EPS of 68 cents.
Along with reporting on the most recent financials, Netflix’s letter to shareholders additionally affords an replace on its unique content material technique. It distinguishes between two several types of Netflix Originals — those like “Orange Is the New Black,” the place Netflix will get the primary window for distribution, and others like “Stranger Issues,” the place it truly owns the content material.
The corporate says:
Right this moment, we make use of a whole lot of individuals in bodily manufacturing, engaged on all kinds of owned titles unfold throughout scripted and unscripted sequence, children, worldwide content material, standup, docs and have movies from everywhere in the world. To assist our efforts, we’ll want extra manufacturing capability; we just lately introduced the choice of Albuquerque, New Mexico as the positioning of a brand new US manufacturing hub, the place we anticipate bringing $1 billion in manufacturing over the following 10 years and creating as much as 1,000 manufacturing jobs per 12 months. Our inner studio is already the only largest provider of content material to Netflix (on a money foundation).
Netflix additionally says romance has been large just lately, due to its “Summer time of Love” slate of unique movies, which have been watched by greater than 80 million accounts. Apparently “To All The Boys I’ve Loved Before” did significantly properly, changing into considered one of Netflix’s most-watched unique movies, “with sturdy repeat viewing.”
The service plans to launch “Gravity” director Alfonso Cuarón’s new movie “Roma” in December, which has already been getting rave reviews at movie festivals. Whereas Netflix’s unique films usually have a minimal presence in theaters, the corporate says “Roma” (like Paul Greengrass’ “22 July”) will likely be launched on greater than 100 screens worldwide — not a blockbuster rollout, however not a perfunctory launch, both.
The corporate is forecasting the addition of 9.four million new members within the fourth quarter.