Netflix is making its mark in every nook and cranny, as the company has posted its data for 2018. There has been a significant increase in the number of subscribers, and not to forget, the revenue. Interestingly, we are in the middle of 2018, and Netflix has already crossed its targets for the year.
Streaming leader garners 7.4 million additional subscribers in the first quarter!
In the despair of the Cassandras, the Netflix model continues to produce miracles. Never before has the leader in video on demand even grown so hot. It once again shatters forecasts by reporting a 62.8% jump in profits on a 40% gain in first-quarter sales.
Because Netflix offers more original series and films than any other platform, the company has garnered 7.4 million additional subscribers in the first three months of the year. That brings its customer base to 125 million subscribers worldwide.
Despite the growing competition in the US market, due to the rise of rival services, including from Amazon, Apple and HBO, the firm of Reed Hastings have seduced nearly 2 million more subscribers in the United States.
The decline in attendance at movie theaters
More than half of US households subscribing to high-speed internet service are now watching Netflix. The success of the platform is one of the reasons for the decline in cinema attendance in the United States, as the public chooses to watch high-quality productions at home. The dark rooms are not the only ones to compete with Netflix. The sums saved by the millions of homes that cancel their subscription to cable channels are partly based on subscriptions to Netflix.
Internationally, where Netflix is experiencing its craziest growth, the net gain of subscribers reached 5.46 million in three months. The service price increases do not seem to affect the popularity of Netflix. The pace of growth in the number of subscribers exceeds 43%, compared to 38.8% last year at the same time.
The streaming giant now depends on 50% of the international for its turnover and 55% for subscribers in some 190 countries. In Brazil, for example, Netflix is driven by the success of its original series “O Mecanismo”, inspired by scandals of political corruption. In the Spanish-speaking world, “La Casa de Papel” is a misfortune. The suspense series that recounts a holdup has also become the most popular series in the language other than English.
Netflix is also a studio. He plans to spend up to $8 billion in original productions in 2018. Of this total, about 80 will be feature films, which exceeds the production volume of a Hollywood studio. And Reed Hastings to scratch the leaders of the Cannes Film Festival: “We regret that our films are not allowed to compete this year at the Cannes Film Festival. The festival has adopted a new rule, which means that if a film is competing in Cannes, it cannot be seen on Netflix in France over the next three years. We would never do such a thing to our French subscribers.”
Netflix shareholders are satisfied. The action that has already climbed more than 60% since the beginning of the year has left to jump again Tuesday on the NASDAQ. In three months, Netflix has made more profits than during the whole of 2016. At more than 135 billion dollars, the capitalization of the firm of Los Gatos (California) has more than doubled in one year. It is now closer to Disney’s $151 billion.
However, in terms of cash flow, the hemorrhage continues. In order to invest heavily in original content and to continue to hire talented professionals hitherto under contract in Hollywood, Netflix is not afraid to anticipate $2 to $3 billion in negative cash flow this year. “We continue to forecast negative cash flows of $ 3 billion to $4 billion in 2018 and remain negative in this regard for several years,” Reed Hastings admits serenely. “We will continue to indebt ourselves according to our needs to finance the increase of our original content,” says the Managing Director of Netflix.