Record viewers flock to Netflix
But shares slide 4pc as revenue disappoints
NETFLIX last night revealed profits of more than £103m for the end of 2018 – taking its full year haul to more than £930m.
The video streaming giant also added a record 8.8m paying subscribers in the fourth quarter, beating its forecast of 7.6m and taking the global total to 148.2m.
For the first time, the US company also detailed viewing figures for its shows, which include hits such as The Crown and House of Cards.
netflix claimed its share of TV-viewing time in the US was 10pc – or around 100m hours a day.
it said suspense thriller Bird Box, starring Sandra Bullock, had been watched by 80m households in its first four weeks.
However shares fell by more than 4pc after its revenues came in below analyst estimates, with the company reporting revenue of £3.23bn compared to an expected £3.24bn. The firm, led by boss reed Hastings ( pictured below), is facing a pivotal year as America’s biggest media companies try to steal its lead. it has reaped huge success and glitzy awards with its original shows but it is now preparing to battle new services being launched by well-resourced rivals. Disney and Warner will debut their own streaming services this year, with Apple also thought to be readying its own competitor. And NBCUNIVERSAL, whose parent company Comcast bought British broadcaster Sky last year, said last week it would launch a streaming service in 2020. The moves will pit netflix up against some of the oldest media brands in the US. Disney, founded 95 years ago, boasts the Star Wars and Marvel superhero franchises, while Warner owns premium cable service HBO, featuring dramas True Detective and Westworld, as well as the DC superhero franchise. At the same time, it is also fighti n g off growing competition from Amazon’s Prime Video service and others such as Hulu.
Analysts say netflix has a head start over its competitors. it also hiked prices in the US last week to boost its spending power.
But some of its most popular shows are licensed from rivals that are now entering the streaming market, with analysts saying these are likely to start disappearing from its service.
For example, American sitcom Friends, which it reportedly paid up to £62m to keep for 2019, is owned by Warner.
As part of efforts to bolster its own content war chest, netflix has been producing its own content and buying up the rights to shows around the world to boost its international audience.
it is also banking on drawing more subscribers with the return of some of its most popular inhouse titles in 2019, with new seasons of The Crown and Stranger Things on the way.
The third season of The Crown will star Olivia Colman – who is tipped to win an Oscar in February – as a younger Queen Elizabeth ii and Helena Bonham Carter as Princess Margaret.
its phenomenal growth in subscriber numbers has pleased investors, with shares in the company up by more than 230pc over the past three years.
netflix shares dropped 4.16pc in after-hours trading last night, falling $14.69 to $338.50.