While the company has been trying to attract viewers with original content, it has been incurring debts as a result of the same.This is anticipated to get reflected in the third-quarter results.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Subscriber Growth to Drive Q3 Earnings” data-reactid=”20″>Subscriber Growth to Drive Q3 Earnings
The company had reported addition of 2.7 million subscribers in the second quarter, falling short of its prediction of 5 million subscribers. Nevertheless, Netflix had predicted an increase of 7 million in total paid subscribers in the third quarter.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The release of Stranger Things (third season) on Jul 4 is likely to have positively impacted membership growth in the third quarter. Netflix claims that around 40.7 million accounts watched the series within the first four days of release, marking its biggest-ever audience for a movie or TV series in a four-day window.” data-reactid=”22″>The release of Stranger Things (third season) on Jul 4 is likely to have positively impacted membership growth in the third quarter. Netflix claims that around 40.7 million accounts watched the series within the first four days of release, marking its biggest-ever audience for a movie or TV series in a four-day window.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Per a report from research firm Sensor Tower, Netflix’s mobile-applications’ downloads have improved 18% year over year in the third quarter. In fact, according to a report from Bank of America Merrill Lynch, improvement in app download was “likely aided” by the release of Stranger Things.” data-reactid=”23″>Per a report from research firm Sensor Tower, Netflix’s mobile-applications’ downloads have improved 18% year over year in the third quarter. In fact, according to a report from Bank of America Merrill Lynch, improvement in app download was “likely aided” by the release of Stranger Things.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Debt to Impact Bottom line” data-reactid=”24″>Debt to Impact Bottom line
Before competition intensifies from the likes of The Walt Disney Company’s DIS Disney+ and Apple Inc.’s AAPL Apple TV, the company needs to address the piling up of debt related to original content production.
Netflix has a total debt of $13.68 billion as of Jun 30, 2019, while cash totaled $5 billion. With major content producers and providers like Disney and BBC removing contents for their own streaming platforms, there is significant pressure on Netflix to fill up the library with original content.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.” data-reactid=”27″>You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Today’s Best Stocks from Zacks” data-reactid=”28″>Today’s Best Stocks from Zacks
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The Walt Disney Company (DIS) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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