Netflix attracts 10 million new subscribers, but disappoints Wall Street

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(New York) Netflix has plunged in Trading Thursday after it disappointed investors, even as the giant of the streaming has attracted more than 10 million new subscribers, trying to distract themselves during the pandemic.






Juliette MICHEL
Agence France-Presse

Since the beginning of the year, the platform has in total attracted 26 million new paying subscribers, attracted by the thousands of hours of programming offered by Netflix at the time of the COVID-19 forced many of them to stay at home, closed the theaters and the cancellation of sporting events.

It is almost as much as the 28 million new members to pick up in the year 2019, on the note of Netflix, which now has 192,95 million subscribers.

“However, as expected, the growth slows as consumers are recovering from the initial shock of the COVID-19 and restriction measures “, says the group, which could not anticipate that 2.5 million new paying subscribers in the third quarter.

In addition to this forecast is disappointing, the california company revealed profits below expectations.

Netflix has certainly had more than doubled its profits in the second quarter for revenue of $ 720 million. But adjusted for action, the point of reference for investors, the benefit amounted to 1.59 dollar, where analysts anticipated 1,81 dollars. Has Wall Street, the title has lost more than 12% in e-commerce before taking a bit.

To Daniel Ives, of Wedbush Securities, this episode, however, is only a “paste” temporarily “due to the fact that market expectations were” lush “.

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New boss

Internet users have especially appreciated the series I’ve Never by Mindy Kaling and Space Force with Steve Carell.

The reality of tv programs Love is blind, Too Hot to Handle and the game The floor is made of Lava also have a lot of success, Netflix is focusing more and more on this type of content.

“We are trying to become the destination of choice for entertainment. To ignore a genre that dominates the programs would be a nonsense”, said Thursday the head of content Ted Sarandos.

On the side of the movies, Gives 5 Bloods Spike Lee, The extraction of with Chris Hemsworth and Wrong Missy with David Spade had a very good market.

The group also emphasizes on the resume “gently” the production of content in the world, after a pause during the pandemic.

The projects are well distributed in Asia, in some european countries and in North America, even if “the current trends of new infections are creating more uncertainty” in the united States.

To the extent that the production times are quite long, the releases of series and original movies planned for 2020 in the aggregate remained intact,” says Netflix.

For 2021, the group expects the number of outputs will be the same, but is more concentrated in the second half.

Netflix is not particularly concerned about this delay.

“The pandemic and the disruption of production have a similar impact on our competitors and our suppliers,” advance the platform.

The competition is even getting to be fierce between Amazon Prime Video, Disney+ Apple+ TV, HBO, Max, or the recent peacock NBCUniversal.

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“In addition, the growth of TikTok is mind-blowing, demonstrating the fluidity of the animation on the internet “, highlights the company by reference to the company’s popular application for the younger guests.

But the platform does not hesitate to pass to allow people to ” just get on Netflix and browse from one success to another and therefore never has the idea of going to another service “, said Thursday, the chief of Netflix, Reed Hastings.

“Even if the containment is relaxed and new competitors begin to expand their services, Netflix is going to maintain its leadership as the leading provider of entertainment,” predicts Eric Haggstrom, senior analyst at eMarketer.

The group is not dependent on the sport, live events or advertising, unlike other new entrants in the market, not “manage the delicate balance between selling content to members of the historical or the placing online of content on a new streaming service,” notes the specialist.

Netflix also announced Thursday that Ted Sarandos was appointed co-ceo alongside Reed Hastings.

If this puts you in a good position to take the head of the platform, the latter said that he had the intention to continue to work in Netflix ” in the next decade.”



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