![]() The company stated that other regions, such as Canada, were “directionally consistent with what we saw in Latin America.” The region reported a loss of net adds of (0.4M) compared to net adds of 1.76M in Latin American last quarter, yet the revenue was up 7% YoY (+13% on constant currency basis). According to management there was a cancel reaction which later eased. In the most recent quarter, global paid adds of 1.75M came in slightly shy of analyst estimates of 1.8M.įor password sharing, the Latin America region was a test region and the Q1 results provided some clues as to how a broader rollout will perform. The good news is, investors won’t have to wait too much longer to find out if the pivots are successful. ![]() In other words, Netflix’s two pivots are high stakes. Today, the company is the top streaming service in the world and has held this top position despite media titan Disney’s attempt to reclaim the media throne. One could argue that moving from DVDs to over-the-top (OTT) was the biggest announcement in the company’s history, yet at the time Netflix had nothing to lose. The Pivot of a Quarter-CenturyĪt the same time that Netflix lost its growth status, the company made the biggest announcement in its history – which was to cutoff password sharing for 100 million users and to roll-out an ad tier that will monetize higher than the Basic and Standard subscription plans. Instead, we plan to further trim our position and build at lower levels. Although our firm is long-term bullish on the stock, we don’t believe now is the time to build a long-term position.
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