Published: Thu, October 18, 2018
Entertaiment | By Minnie Bishop

Netflix shares surge on positive subscriber news

Netflix shares surge on positive subscriber news

But despite those concerns, and last quarter's subscriber wobble, Netflix shares have risen 78% this year, as consumers continue to move away from traditional media and access more content online.

In a letter to shareholders, CEO Reed Hastings and other executives attributed its third-quarter success in part to a strong content slate that included new seasons of Orange Is the New Black, Ozark, and Marvel's Luke Cage.

Shares have surged more than two-thirds this year and closed on Tuesday at $346.40 in NY, valuing the company at nearly $154bn. However, Netflix CEO, Reed Hastings, also took the opportunity to talk a bit about the European Union's potential content quota plans: "The European Union is now rewriting its audio visual rules, which will eventually require subscription streaming services to devote a minimum of 30% of their catalog to European works".

Of course, the quarter also attracted its share of controversy, including the debut of Insatiable, which earned accusations of fat-shaming.

Netflix will face stiff competition, with Walt Disney, the world's largest entertainment company, looking to launch its own on-demand services next year, as is AT&T, the parent of Warner Bros and HBO.

Netflix (NASDAQ:NFLX) published their Q3 earnings to great fanfare from investors yesterday.

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For now, Netflix said it was "super encouraged with India" and the growth that they have got early on but the company is aware that it's going to be somewhat of a tough market going ahead right. The company anticipates adding another 9.4 million subscribers during the fourth quarter, up 13% compared with the 8.3 million it added a year ago.

Analysts estimate that it added about 676 hours of original programming in the United States in the most recent quarter - 135% more than in the same period past year. The streaming service's May 2027 euro bond surged to a three-month high on Wednesday, according to data compiled by Bloomberg.

"It was a surprisingly good quarter that caught a lot of the financial community off guard", said Jim Nail, a senior analyst at Forrester Research.

Rivals have long groused that Netflix can spend ungodly sums without ever having to make money itself.

"More than 80 million accounts have watched one or more of the Summer of Love films globally and we are already in production for the next set of original rom-coms for our members", Hastings wrote.

Is Netflix anxious about competition yet?

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