Update: Netflix 3Q11 Earnings

Netflix is scheduled to release its 3Q11 earning report after financial markets close here in the U.S.  Since its lasts earnings call, Netflix has experienced significant highs and lows.

The highs include:

  1. The launch of Netflix in 43 countries in Latin America and the Caribbean

  2. Surpassing 1 million subscribers in Canada

  3. Support for Android devices

  4. Agreements with AMC, Discovery, Dreamworks Animation, CBS and NBC Universal

  5. The forthcoming launch in the U.K and Ireland in early 2012

The lows:

  1. Price increases and separation of streaming and DVD services

  2. The announcement and then reversal regarding Qwikster

  3. A stock price that has dropped from a high of $298.73 on July 13, 2011, to its current price of around $117

I do not imagine there will be any major shockers given the fact that Netflix essentially pre-announced its 3Q on September 15.  Netflix indicated a domestic subscriber loss of around 1 million, so it will be interesting to see/learn more details of its final subscriber numbers and hopefully they will provide some guidance on consumer interest in CALA for its service.

Update: 

  1. Netflix loses 810,000 domestic subs, but gains 510,000 internationally

  2. Netflix will pause international expansion after U.K/Ireland launch

  3. Expecting DVD subscription to decline sharply in 4Q11 (from 13.93M in 3Q to 10.3-11.3M in 4Q) – ouch!

Interestingly – while DVD subscription are expected to be nearly 1/2 of streaming – revenue is only slight less, while profits are nearly 6X that of streaming.  It is definitely the cash cow at the moment.

#broadband #video

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