Home News Netflix set to report results, including new Ad-Tier service

Netflix set to report results, including new Ad-Tier service

by SuperiorInvest

Streaming giant Netflix will release its fourth quarter results after the markets close today and it is is expected to post the slowest revenue growth on record its new ad-supported streaming layer is struggling to gain traction.

Earnings have yet to show the full impact of the new $6.99 subscription service, though Netflix estimates it will add 4.5 million subscribers in the final quarter of 2022. That would be the lowest increase for the holiday season since 2014. Revenue in the quarter is expected to have risen just 1.7% to $7.84 billion, the lowest since it was published in 2002. Earnings per share (EPS) are estimated at 44 cents.

Netflix’s financial woes underscore the company’s difficulty weathering headwinds including stiff competition from Apple Inc.’s Apple TV+, Walt Disney Co.’s Disney+, Amazon.com Inc.’s Amazon Prime Video. and other streaming services; dampened customer spending in times of inflation; and increasing production costs. Netflix expects to spend about $17 billion a year on content development over the next few years.

Netflix will knowledge on revenue and earnings, but plans to stop reporting subscriber growth starting this quarter, which could lead to more stock price volatility.

Netflix stock (NFLX) have climbed 10% so far this year and are up about 70% over the past six months.


Source Link

Related Posts

%d bloggers like this: