Netflix Plans to Outspend Hulu & Amazon on New Content

Netflix Plans to Outspend Hulu & Amazon on New Content

Netflix Plans to Outspend Hulu & Amazon on New Content

Netflix has been borrowing heavily to fund such rapid growth in TV shows and movies.

New customers were lured in by returning seasons of "Orange is the New Black" and "Marvel's Luke Cage", as well as new shows such as "Ozark" and "Maniac", the limited series starring Emma Stone and Jonah Hill, Netflix said. "That's a really good number for a market that's this mature". By the end of the year, Netflix expects to expand that base to 146.5 million.

The additions helped lift profit more than threefold to 89 cents a share, beating the 68-cent average of analysts' estimates. Netflix first signed a carrier billing in India with Vodafone previous year; postpaid customers could pay for Netflix on their monthly bills.

Netflix held its quarterly earnings report earlier this week, recording a record high number of subscribers, which assuredly made investors happy.

The numbers are likely to restore investor confidence in the streaming service, which when reporting second-quarter earnings in July fell short of analysts' forecast for new subscribers by more than 1 million.

The actual total - which included about one million new subscribers in the U.S. and nearly 5.9 million overseas - set a record for the third quarter, Netflix said. Streaming revenue surged 36%, reaching almost $4 billion in the quarter - a performance that matched Wall Street's forecasts of $4 billion.

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The company exceeded forecasts in both US and worldwide markets.

Netflix has upended the economics of pay TV by offering customers thousands of programmes on-demand for a monthly fee that's a fraction of the cost of a multichannel cable or satellite package.

Rivals have long groused that Netflix can spend ungodly sums without ever having to make money itself. "However, given Netflix's longtime leadership and extensive content library, competitors will be hard-pressed to build streaming businesses that can aspire to become market leaders".

Media companies that once sold programs to Netflix for hundreds of millions of dollars are now building their own on-demand services to compete head on.

There is more uncertainty ahead too as competition moves in: Apple has been beefing up its offerings, and Disney is expected to debut its much anticipated direct-to-consumer service next year.

Expects to get more granularity on the company's 2019 expense plans by line item next quarter, while the company will see easier expense comparisons in 2019 given the push toward self-produced content and content-specific marketing ramp-up in 2018.

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