Sign up for our free daily newsletter
Get the latest news and some fun stuff
in your inbox every day
Get the latest news and some fun stuff
in your inbox every day
Last night Netflix reported their 4Q and full year numbers. Let's deal with the quarterly figures versus consensus first and then talk about how 2018 was for the company.
Revenue was in line with expectations of $4.19bn, a 27.4% increase. Total net adds were 11.36 million, crushing expectations. Remember I mentioned that Goldman Sach's estimations were for 10.2mn adds and the general consensus was for 9.4mn adds?
Content spend is still huge, but they have found a direct correlation with content spend and added subscribers. The better the content, the more Netflix becomes a priority in homes, especially as series and films go viral. Apparently Bird Box reached 80 million homes. Who needs to go to the movies these days when you can watch the latest releases on a quality HD TV in the comfort of your own home.
2018 was a good year for Netflix. Take a look at the whopping subscriber growth they had in the year. Netflix films and tv shows picked up 5 Golden Globe wins.
Competition for eyes is rife. In the US they still only have about 10% of TV screen time and even less than that of mobile screen time. Here was some interesting commentary from the release.