Netflix Misses Q3 Subscriber Forecast, Stock Falls
In the past twelve months shares of Netflix are up more than two hundred percent so. Forgive me for not wringing my hands over the fact that shares of Netflix are down about six percent. This morning third quarter profits came in lower than expected. That said. Weakest. Subscriber growth in four years. That's I don't know. It doesn't seem like something to worry a lot about, but it certainly is noteworthy. Actually, think it's something that's kind of to be expected. So there's something called the pull forward effect, which is there's rapid growth in the first half of the year. So then the dot com steals, the subscribers would have happened in the back half of the year. So they added two point, two, million new subscribers, which is less than the three point three, million predicted. By. In total for the year, they added over twenty six million customers, which is more than they did of all of last year. So through the first nine months of twenty, twenty they've. got a point, one million members and they're on pace to add thirty, four, million users in two, thousand twenty, which will be their strongest year of growth. Aber so even though this quarter is the lowest number. Since two thousand fifteen if you kind of zoom out look at the big picture, they're going to to almost two hundred million customers in total, which if you're going to compare it to Disney sixty point, five, million subscribers who has about thirty million. So it's still by and large the most popular. Streaming site. Did Not get a chance to listen to the conference call. Do you know the extent to which management game guidance on production schedule because that's certainly we certainly seen that in the traditional movie? Industry, of Television as well to a lesser degree, but we've seen a lot of movies just stopped production altogether. Did they give any guidance on their own pipeline? They did. So they finish fifty projects since the initial shutdown and they will release more programs next year in twenty twenty, one minute didn't twenty twenty. They are returning to production mainly in Europe and in Asia not as much. So in the US, they're currently filming season for of Stranger things they're filming red notice which I don't know if that's based on the book by Bill. Browder. But if it is, I'm excited to watch it. They're filming season two of the witcher. So they seem that they are both finishing filming finishing production and filming and re ramping filming outside of the US. One of the things I did know Yeah. The headline is a subscriber growth in four years their subscriber growth in the Asia Pacific region was really strong this last quarter. Yeah, it was the largest contributor to paid membership growth. So it was forty six percent of the global paid net ads. So I think that that's an interesting kind of problem or gift that they have is they now have such a global subscriber base. So you have to see shows that are in English, and then you have to see shows that are in different languages and you have to see show that widely appeal like I don't know if you watched Indian matchmaking but that was an interesting show that appealed to. I think you know I'm not watching a match making show I heard a plus reviews my sister really liked it. But I think that that's an interesting kind of experiment and you see that it was very popular in India but it was also super popular in the US trying to figure out how they can get shows and movies that have that wide appeal while also focusing on those knee shows as well that do really well like the umbrella academy or the Social Dilemma the documentary that came out.