Netflix has beaten the Wall Street’s earnings expectations for the first quarter, but has set the forecast on lower side for upcoming quarter. This is the key highlighter to explain the challenges that company is facing in its efforts to grow continuously, with the face that streaming service is already well-established in the market.
Although company is pleased with the results so far, but they are planning to shift a wider launch of a plan to crack down on unsanctioned password sharing into the second quarter as well.
With the signs of market saturation, the streaming video pioneer is looking into new ways of making money, such as the password crackdown and a new ad-supported service. These strategies reflect that Netflix is putting an effort to adapt to the constantly changing market conditions and explore new ideas to continue growing in a highly competitive industry.
According to Refinitiv, the earnings and revenue for the first quarter came in at approximately the same levels as estimated by the average analyst. The company reported earnings per share of $2.88 (roughly Rs. 200) and revenue of $8.162 billion (roughly Rs. 67,000 crore).
There was a drop of 11 percent in share price of Netflix in after-hours trade following the report but eventually recovered to gain 1.4 percent.
There has been a slowdown in growth across the whole streaming industry as competition has intensified, with major players like Disney, Amazon and HBO entering the market with their own services.
During the period of January through March, 1.75 million streaming subscribers got added to Netflix, falling short of the estimated 2.06 million new additions projected by analysts.
Getting 1.75 million new subscribers is a big deal and the streaming giant has solidified its place among all the competitors. This also shows the trend of more and more people preferring OTT platforms as their choice of entertainment,
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