Netflix has recently posted its earning results from the mixed fourth-quarter and it seems that it has its shares down 4% in the extended trading.
We all expected an expensive year for Netflix, due to all the original content and the overall content it offers. The reported EPS represents 66% markdown from 2018 – the third quarter, and 27% downside from the rest of the year.
The revenue came at its best timing with all the recent trends. However, the company got low results – lower than they expected – for the first quarter of 2019. They want earnings per share – 56% on the revenue of $4.49 billion. If we are to compare it with Wall Street, where it estimates 82% on the revenue of $4.61 billion, we can clearly see the difference.
What did Netflix have to say?
Before this, Netflix warned that all the content costs are more important in the second half of the year. The move over its original content has put a lot of pressure on them to make lots of money for the business, and all the money needs to go into the business. The company is super confident in its investment.
Netflix and HBO focus a lot on original content to get rid of all the threats that come from new streaming buddies, like Disney, Amazon or AT&T. Netflix has met its expectation with its original film Bird Box and Bodyguard.
Also, for the unscripted content segment, Netflix has branded many original accounts for the biggest part of the viewership.
They said that they’ve been trying – for 20 years now – to please their clients. They always check which shows are the most watched, which product features work best. It’s actually quite the circle: they improve their service for us, they grow, then they get more money to invest.
Meagan Kozlovs is a reporter for Debate Report. She’s worked and interned at Global News Toronto and CHECX. Megan is based in Toronto and covers issues affecting her city. In addition to her severe milk shake addiction, she’s a Netflix enthusiast, a red wine drinker, and a voracious reader.