Today Netflix announced their 3rd quarter 2017 results and announced that they added 5.3 million total streaming subscribers.
Today the streamer said the proliferation of new SVoD platforms around the world - such as that announced by Disney earlier this year, which will see its content withdrawn from Netflix in the United States and placed on its own dedicated service - means it must focus more attention and money on its own commissions. The stock went up more than 2 percent in after hours trading after earnings posted.
As always, subscriber numbers are closely watched and globally, the service added 5.3 mln subscribers, compared to Wall Street's estimate of 4.5 million. Although the company is bound to lose some subscribers with the price increase, investors aren't too anxious. Netflix forecast 6.3 million additions for the current quarter, just above analysts' average estimate of 6.25 million, which would bring its global customer base to almost 115.6 million.
Whether this ends up being worth it long-term for Netflix remains to be seen, but as they continue to lose content deals from studios angling to keep their streaming rights in house, it certainly seems worth trying. Also, insider Jonathan Friedland sold 2,496 shares of the company's stock in a transaction that occurred on Wednesday, July 19th.
Netflix is already beginning to put out the bigger budget fare, such as "Bright", a $90 million thriller starring Will Smith set for release on the streaming site on December 22.
Disney's decision to pull its content from Netflix starting in 2019 caused a bit of a panic among Netflix investors, but Netflix CEO Reed Hastings said the company doesn't need Disney's content to keep fueling its global growth. In the past 52 weeks the company's stock price has moved within the range of $98.38 to $200.82.
Netflix said: "Our goal is to work with the best creators in the world and own the underlying intellectual property so that we can continue to deliver wonderful content to our members across the globe".
In a quarterly shareholder update Netflix wrote: "As we move into 2018, we aim to achieve steady improvement in worldwide profitability and a growing operating margin as our success in many large markets helps fund investments throughout Asia and the rest of the world". Rivals include Amazon.com ( AMZN ), Hulu and CBS ( CBS ) now and soon Apple (AAPL) and Disney will join the fray.
Netflix expects to release around 80 original films next year, as it looks to hit the kind of scale in movies that it's achieved on the TV side, according to chief content officer Ted Sarandos. State Of New Jersey Common Pension Fund D holds 0.22% of its portfolio in Netflix, Inc.
"We will wrap up this year with our biggest original film project 'Bright, ' which is Will Smith starring with Joel Edgerton and directed by David Ayer", he said.
"People will start seeing the potential for this big movie initiative", he said.