Q3 2019: Mobile plan in India has been better than expectation: Netflix

The streaming giant posted total revenue of $5.245 billion, an increase of 31 per cent year-on-year

by exchange4media Staff
Published - Oct 17, 2019 9:04 AM Updated: Oct 17, 2019 4:15 PM

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Netflix

Netflix has bounced back in the third quarter, posting total revenue of $5.245 billion, an increase of 31 per cent year-on-year.

Earnings per share was reported as $1.47, nearly double the 89 cents a share in the year-earlier period. The company’s global subscriber base increased by 6.8 million to 158.33 million.

The gain of 6.8 million subscribers was a third-quarter record, the company reportedly said in its quarterly letter to shareholders. This is a 12% uptick from the same quarter in 2018.

In the subscriber letter, Netflix offered its view of the increasing competition. The company said it has gone up against Amazon, YouTube, Hulu and linear TV for more than a decade. “The upcoming arrival of services like Disney+, Apple TV+, HBO Max, and Peacock is increased competition, but we are all small compared to linear TV,” the letter continued. “While the new competitors have some great titles (especially catalogue titles), none have the variety, diversity and quality of new original programming that we are producing around the world.

Commenting on their recently launched lower-priced mobile plan in India, Netflix stated, “We rolled out a lower-priced mobile plan in India in July and we’re pleased with the results. Our approach with pricing is to grow revenue and so far, uptake and retention on our mobile plan in India have been better than our initial testing suggested. This will allow us to invest more in Indian content to further satisfy our members. While still only a very small percentage of our total subscriber base, we’re continuing to test mobile-only plans in other markets.

“The launch of these new services will be noisy. There may be some modest headwind to our near-term growth, and we have tried to factor that into our guidance. In the long-term, though, we expect we’ll continue to grow nicely given the strength of our service and the large market opportunity.”

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