Netflix Shares Soar on Surprise Third Quarter Subscriptions Boom

[MacRumors]

Netflix has reported surprisingly strong third quarter results, sending the company's share prices soaring 20 percent in late trade (via Reuters).

The streaming content company added over 50 percent more subscribers than expected, owing to original shows like Stranger Things and Narcos drawing significant numbers of new international viewers and retaining U.S. customers despite a price hike. The news led to a share price rise to $119.82 in extended trade from a close of $99.80.

The company's performance signaled a distinct turnaround from its previous quarter, which indicated largely disappointing subscription growth. Netflix said it was on course to start collecting yields on its global profits next year, even though it was increasing spending on original programming.

Netflix said it had added about 3.2 million subscribers in Q3, far higher than a 2 million average estimate. In the U.S., the company added 370,000 subscribers, also above analysts' estimate of 309,000.

Netflix has expanded into more than 130 markets worldwide, including most major countries, except China. It said on Monday it was temporarily dropping plans to launch a service in China in the near term, opting instead to license its shows for "modest" revenue.

The company plans to increase spending on original TV shows and movies from last year by $1 billion, for a total of $6 billion earmarked for 2017.

Netflix's shares have surged in the past few years, thanks to rapid growth as the company achieved a significant shift in television watching habits. However, stock was down 12.7 percent this year as investors worried about slowing growth in the U.S. market and increasing competition from the likes of HBO Now, Amazon Video, and Hulu.

Article Link: Netflix Shares Soar on Surprise Third Quarter Subscriptions Boom

 

[JaySoul]

A few years ago, I decided to not subscribe to Netflix, but instead invest the money I would have spent into... Netflix shares.

It's worked out alright.

 

[keysofanxiety]

Good on Netflix. Can't fault what content they have. Available on almost every device imaginable too.

Plus they added Rick & Morty!

 

[Christoffee]

Netflix vs buying your own DVDs. It's tough. If you're into the latest and greatest or watch loads of TV and films, Netflix makes a lot of sense. If you're collecting older films and TV shows these can be had incredibly cheaply, particularly if you go secondhand. The second hand market in the UK is thriving.

Netflix doesn't let you download content to your phone or tablet. That is a downer.

 

[BlueParadox]

After seeing the first episode of STRANGER THINGS at a friend's house, I immediately signed-up to watch the rest. Brilliant show, allowing the creators to utilise so much of what made 80's movies - particularly the early 80's - so memorable: tone, kids playing centre stage, special effects, (synth)music.

Well done to Netflix for seeing this show through, from beginning to end...

 

[canadianreader]

Interesting I just subscribed few days ago to watch some old tv shows. I like it.

 

[flyinmac]

The relatively poor network television series selection this season certainly helps them.

I find that this year has seen me at the local movie rental center more than anytime in my past.

Netflix might have been an option, but I can't afford $150 a month for Internet. Unlimited plans are expensive.

 

[JackieInCo]

A lot of them were probably the free year given for buying Samsung phones.

I have two free years and that is the only reason I am still a subscriber. I subscribe for the movies and the movie selection is poor at best.

 

[Mac Fly (film)]

I honestly think Apple should still make a bid to buy Netflix. The could provide a special subscription deal to Apple TV owners to get everyone to want one and build that platform. No one understands new content like Netflix. A bright future for them. 1/4 of Apple's cash and they would own streaming, it would substantially help build their new Apple TV platform with everyone wanting to own one and finally they'd have a real 'new content' arm that could focus on what it does best. Apple could also help Netflix in the app department as they've no clue what they are doing.

$60B, Netflix and chill.

They'd probably make the money back over 10 years at which point Netflix would be everyone's cable cutting option and Apple would own the market.

 

[oneMadRssn]

I honestly think Apple should still make a bid to buy Netflix. The could provide a special subscription deal to Apple TV owners to get everyone to want one and build that platform. No one understands new content like Netflix. A bright future for them. 1/4 of Apple's cash and they would own streaming, it would substantially help build their new Apple TV platform with everyone wanting to own one and finally they'd have a real 'new content' arm that could focus on what it does best. Apple could also help Netflix in the app department as they've no clue what they are doing.

$60B, Netflix and chill.

They'd probably make the money back over 10 years at which point Netflix would be everyone's cable cutting option and Apple would own the market.

Please no. Anything cloud-based that Apple touches turns into a turd really fast. Netflix should stay independent for as long as possible.

 

[69Mustang]

"...it would substantially help build their new Apple TV platform with everyone wanting to own one..."

Why would everyone want to buy an ATV? Netflix is available on, well everything. If they own it and leave it with it's current availability then no harm, no foul. If you're suggesting Apple buys Netflix and make it exclusive to Apple products that's a really quick way to kill Netflix. Ubiquity and being platform agnostic is why Netflix is as big as it is.

 

[Mac Fly (film)]

Why would everyone want to buy an ATV? Netflix is available on, well everything.

By offering a special subscription price for Apple TV. Think: $7 for ATV owners and $10 for everyone else.

 

[69Mustang]

By offering a special subscription price for Apple TV. Think: $7 for ATV owners and $10 for everyone else.

Wait... so you're saying I can spend $150 to save $3. Are you my wife? Nichole is that you? If it is, I love you but this math doesn't work at home and it won't work on the internet either. Besides, we're talking about Apple. This is the same company that still sells two year old tech for full price. That recently sold an old ass monitor for $1000. You'll pay full price for the privilege of this: ... and like it.

Pork chops for dinner please... LU

 

[Juicy Box]

I honestly think Apple should still make a bid to buy Netflix. The could provide a special subscription deal to Apple TV owners to get everyone to want one and build that platform. No one understands new content like Netflix. A bright future for them. 1/4 of Apple's cash and they would own streaming, it would substantially help build their new Apple TV platform with everyone wanting to own one and finally they'd have a real 'new content' arm that could focus on what it does best. Apple could also help Netflix in the app department as they've no clue what they are doing.

$60B, Netflix and chill.

They'd probably make the money back over 10 years at which point Netflix would be everyone's cable cutting option and Apple would own the market.

Maybe if this did happen, Apple could improve the Netflix app on the ATV4, because right now, it isn't as good as it could be. Actually they could just use the ATV3 version and that would be a huge improvement.

 

[jdclifford]

I just cancelled my Netflix sub. Haven't used it much in long time. Don't care for the original programming road it's taking ($40M for 2 Chris Rock specials?). Still have Amazon Prime.

 

[coolfactor]

After seeing the first episode of STRANGER THINGS at a friend's house, I immediately signed-up to watch the rest.

Well done to Netflix for seeing this show through, from beginning to end...

But, but, but .... it's not over yet....

 

[SteveJobs2.0]

Netflix just needs to add offline watching. Maybe allow people to download offline 3 movies and 6 episodes at a time. No parent would or traveler would ignore this feature.

 

[Plutonius]

It would have even been a bigger quarter but I dropped Netflix streaming .

 

[photoj2754]

Netflix vs buying your own DVDs. It's tough. If you're into the latest and greatest or watch loads of TV and films, Netflix makes a lot of sense. If you're collecting older films and TV shows these can be had incredibly cheaply, particularly if you go secondhand. The second hand market in the UK is thriving.

Netflix doesn't let you download content to your phone or tablet. That is a downer.

That may be changing:http://mashable.com/2016/06/24/netflix-download-rumor/#YrvHTRt568q5

 

[GeneralChang]

A few years ago, I decided to not subscribe to Netflix, but instead invest the money I would have spent into... Netflix shares.

It's worked out alright.

That was a good call. I just subscribed to Netflix, and that's been a good call too.
[doublepost=1476800201][/doublepost]

Maybe if this did happen, Apple could improve the Netflix app on the ATV4, because right now, it isn't as good as it could be. Actually they could just use the ATV3 version and that would be a huge improvement.

Like how "recently watched" is sometimes the very last grouping in the app? I'm not sure how the app decides the vertical order of those groups, but recently watched should always be on top. And "My List" should always be right below it.

Still, better than the Hulu app by far. That app was so unreliable I canceled my Hulu subscription.

 

[Juicy Box]

Like how "recently watched" is sometimes the very last grouping in the app? I'm not sure how the app decides the vertical order of those groups, but recently watched should always be on top. And "My List" should always be right below it.

I also wondered why this is. It seems almost random.

 

[Keane16]

Please no. Anything cloud-based that Apple touches turns into a turd really fast. Netflix should stay independent for as long as possible.

Anything? Sure they've had issues. But most of my Apple based cloud stuff works pretty damn well.

iCloud backups each night, iCloud Keychain, Find My iPhone, iCloud Photo Library (one of my favs), continuity and hand off features (recently added Desktop and Documents folder sync via iCloud Drive have been a nice win for my workflow), even the old stuff like movie streaming via iTunes has worked pretty smoothly for years. Overall as an end user more of their cloud stuff works than doesn't.

=====================

I don't really like the rumours of Apple buying Netflix or similar rumours. Let the content guys do the content.

 

[TheAppleFairy]

Why would everyone want to buy an ATV? Netflix is available on, well everything. If they own it and leave it with it's current availability then no harm, no foul. If you're suggesting Apple buys Netflix and make it exclusive to Apple products that's a really quick way to kill Netflix. Ubiquity and being platform agnostic is why Netflix is as big as it is.

Best interface for netflix and hulu out there.

 

[oneMadRssn]

Anything? Sure they've had issues. But most of my Apple based cloud stuff works pretty damn well.

iCloud backups each night, iCloud Keychain, Find My iPhone, iCloud Photo Library (one of my favs), continuity and hand off features (recently added Desktop and Documents folder sync via iCloud Drive have been a nice win for my workflow), even the old stuff like movie streaming via iTunes has worked pretty smoothly for years. Overall as an end user more of their cloud stuff works than doesn't.

=====================

I don't really like the rumours of Apple buying Netflix or similar rumours. Let the content guys do the content.

You're right. I was being hyperbolic.

 

[iphone1105]

A few years ago, I decided to not subscribe to Netflix, but instead invest the money I would have spent into... Netflix shares.

It's worked out alright.

so at 10$ a month for a while, x12, over lets say 5 years, you bought a handful of shares????
[doublepost=1476810931][/doublepost]

That may be changing:http://mashable.com/2016/06/24/netflix-download-rumor/#YrvHTRt568q5

That would be great, services like Vudu let you do this and its phenomenal!
[doublepost=1476810965][/doublepost]

Best interface for netflix and hulu out there.

You ever seen the roku or smart TV apps? they have great UI's