About this weblog

What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.

Tuesday, April 17, 2018

Netflix's Price Rises Succeed

Netflix reported 43% year-on-year growth in revenue to 3.7 billion US dollars for the first quarter, due to a 25% increase in subscribers and a 14% rise in its average selling price.  The video streaming company said that global net adds totalled 7.41 million, up 50% year-over-year and ahead of its 6.35 million forecast. "The variance relative to our guidance was driven by continued strong acquisition trends across the globe which we attribute to the growing breadth of our content and the worldwide adoption of internet entertainment," the company said.

For the current quarter, Netflix forecast revenue of 3.9 billion dollars, which would represent a 41% year-on-year increase. It anticipates 6.2 million net additions globally, including 5 million outside the US. "We’ll have 7.5 billion to 8 billion dollars of content expense (on a P&L basis) in 2018 across a wide variety of formats (series, films, unscripted, docs, comedy specials, non-English language) to serve the diverse tastes of our growing global membership base," it added. Source: Netflix statement

My report for STL Partners exploring the future of Netflix and Spotify is available here.

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