Netflix\u2019s\u00a0second-quarter\u00a0earnings report\u00a0contained no bombshells, and that\u2019s just fine for the company and its investors.<\/p>\n
In recent weeks,\u00a0Paramount Global\u00a0has\u00a0agreed to merge with\u00a0Skydance Media.\u00a0Warner Bros. Discovery\u00a0is\u00a0considering all options for its future\u00a0and\u00a0may lose broadcast rights to the NBA.<\/p>\n
While the media and entertainment landscape around Netflix is in a state of change, the world\u2019s largest streamer is fine with the status quo.<\/p>\n
\u201cIf we execute well \u2014 better stories, easier discovery and more fandom \u2014 while also establishing ourselves in newer areas like live, games and advertising, we believe that we have a lot more room to grow,\u201d Netflix said in its\u00a0quarterly shareholder letter. \u201cBecause when we delight people with our entertainment, Netflix can drive higher engagement, revenue and profit than the competition. This in turn creates a more loved and valued entertainment company \u2014 for our members, creators and shareholders \u2014 that we can strengthen and grow over time.\u201d<\/p>\n
Netflix classified the streaming, pay TV, film, gaming and branded advertising market as a $600 billion industry in terms of total annual sales, noting the company accounts for about 6% of that revenue.<\/p>\n
The streamer added more than 8 million subscribers in the quarter. It now has more than 277 million global customers, making it by far the largest subscription streaming service in the world. Netflix\u2019s market valuation as of Thursday\u2019s market close is $277 billion.<\/p>\n
Nielsen statistics show Netflix as the second most-watched streaming service in the U.S.,\u00a0trailing only YouTube. But rather than worry about\u00a0YouTube\u2019s\u00a0competition, Netflix is content to focus on the other 80% of the TV market, the company reiterated.<\/p>\n
\u201cLooking to the future, we believe our biggest opportunity is winning a larger share of the 80%+ of TV time (primarily linear and streaming) that neither Netflix nor YouTube has today,\u201d the company said.<\/p>\n
While Warner and Disney\u00a0announced a new cross-company\u00a0bundle in May that will give consumers the ability to buy Max with Disney\u2019s suite of streaming services for a discount, Netflix made a point to say it feels no need to engage with the competition.<\/p>\n
\u201cWe haven\u2019t bundled Netflix solely with other streamers like Disney+ or Max because Netflix already operates as a go-to destination for entertainment thanks to the breadth and variety of our slate and superior product experience,\u201d Netflix said. \u201cThis has driven industry leading penetration, engagement and retention for us, which limits the benefit to Netflix of bundling directly with other.\u201d<\/p>\n
Netflix\u2019s focus remains building its advertising business and adding streaming subscribers on the back of its strength of content.<\/p>\n
It\u2019s not the most dramatic of narratives. It may not make for a great Netflix series.<\/p>\n
But as an investment, shareholders will happily take it.<\/p>\n<\/p>\n
Netflix\u2019s\u00a0second-quarter\u00a0earnings report\u00a0contained no bombshells, and that\u2019s just fine for the company and its investors. In recent weeks,\u00a0Paramount Global\u00a0has\u00a0agreed to merge with\u00a0Skydance Media.\u00a0Warner Bros. Discovery\u00a0is\u00a0considering all options for its future\u00a0and\u00a0may lose broadcast rights to the NBA. While the media and entertainment landscape around Netflix is in a state of change, the world\u2019s largest streamer is fine […]<\/p>\n","protected":false},"author":0,"featured_media":6426,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-6425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/6425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=6425"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/6425\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/6426"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=6425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=6425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=6425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}