Netflix earnings tomorrow - What to expect

[Guest]

Netflix (NFLX) posted disappointing user growth for the second quarter, but analysts expect the streaming giant to announce a rebound on Tuesday when it reports third-quarter earnings after the markets close, partly due to growth in India.

According to third-party estimates, Netflix saw huge subscriber growth during the period in India, one of Netflix’s bright spots. Credit Suisse analyst Douglas Mitchelson says the streaming giant saw a 434% increase year-over-year in mobile app downloads — a measurement he used as a ***** for subscriber growth — from users in the country, which has over 1.3 billion residents. Where app downloads are concerned, India ranked third for market share, behind only the U.S. and Brazil; however, its market share grew more rapidly than either country during the third quarter.

“Netflix appears to be growing very strongly in India, and that growth has continued throughout 3Q18,” Mitchelson wrote in a report published earlier this week. “Netflix app downloads by first-time subscribers doubled vs. last quarter, and in absolute terms, the data suggests India is now contributing more first-time Netflix subscriber gross additions than Germany, France, Spain, Italy, and the U.K. combined.”

Source: Credit Suisse

Chalk up the huge subscriber growth in India in part to it being a far less saturated market versus the U.S. Piper Jaffray senior research analyst Michael J. Olson estimates that almost 60% of all internet-connected homes in the U.S. already have a Netflix subscription versus less than 15% of households in international markets, excluding China.

The streaming giant is also catering more to Indian audiences, releasing a trio of hit titles this summer, including the horror miniseries “Ghoul,” the crime drama  “Sacred Games,” and the short-film anthology “Lust Stories,” with plans to release a major new original Indian title every month over the next 12 months.

Netflix also plans on hiring another 30 or so employees in its Mumbai offices, effectively doubling the office’s headcount in areas such as content licensing, production, marketing, legal and finance, Netflix Chief Talent Officer Jennifer Neal told the Times of India earlier this month. While 60 or so employees is a veritable drop in the bucket given Netflix employs over 4,200 people in its Los Gatos and Los Angeles offices, its increased hiring in India indicates the company is taking the market seriously. The streaming giant also announced in August a partnership with Bharti Airtel, the second-largest telecommunications company in India, offering three free months of Netflix to new subscribers of some services.

Not a believer

However, not everyone is as bullish on Netflix’s prospects in India. While Olson is optimistic that Netflix still has room to eventually raise prices on subscriber plans without irking subscribers — a move it could partly use towards bolstering its $2 billion-plus original content budget —Michael Pachter of Wedbush Securities contends the market potential in India isn’t as large as his peers might think.

“Netflix costs 800 rupees,” Pachter told Yahoo Finance. “The median per capita income in India is $625 or so, and 800 rupees is $10.85 per month. Hard to believe that there are a ton of potential customers at these prices.”

Regardless, expect Netflix management on Tuesday to highlight international growth in India, as well other international markets like Brazil, Mexico and France, which also saw a significant increase in mobile app downloads during the third quarter, according to Credit Suisse.  

[whatsapp]

Oka vella paiki vachina malli short kotadame !! Barbar 300 tagalalsindhe ass per candle stick!!

[Spartan]

420 ki pattukon kurchunna already...

[Spartan]

Netflix banking on Indian audience.

[Guest]

yes..ee saari subscriber number growth meede untadi..india is the key market now

[Guest]

4 minutes ago, Spartan said:

420 ki pattukon kurchunna already...

420 ante musk gaade gurthostaadu 

aa number ippatlo kashtam gaani..jump aythe untadi after earnings call

[Spartan]

1 minute ago, Guest said:

420 ante musk gaade gurthostaadu 

aa number ippatlo kashtam gaani..jump aythe untadi after earnings call

anduke post vesaka pakka thread lo velli..malli check cheskunna...TSLA post kaadu kada ani

[Neekendu]

17 minutes ago, Spartan said:

Netflix banking on Indian audience.

Manollaki yedi kothaga vasthe daanni arga deesi vadulutharu 

[Spartan]

17 minutes ago, Neekendu said:

Manollaki yedi kothaga vasthe daanni arga deesi vadulutharu 

Sacred Games pichaga watching sesi untaru...also Lust Stories...subscription pergutadi elagaina..

[Nellore Pedda reddy]

Netflix will go down. TimeWarner is starting their subscription service and Disney will be starting theirs next year 

[macha]

Already Netflix website news no subscriber growth to 7 million ani petadu kada if some one calculates it it’s huge beat ....it’s guidance what matters and due to current market trends it will fade into earnings even if guidance super ga unaa for atleast end of nov

[macha]

27 minutes ago, Nellore Pedda reddy said:

Netflix will go down. TimeWarner is starting their subscription service and Disney will be starting theirs next year 

Time Warner impact enta untado telvadu gani Disney vastey nflx ki kasta kalam.. Disney has huge content already 

[macha]

1 hour ago, Guest said:

420 ante musk gaade gurthostaadu 

aa number ippatlo kashtam gaani..jump aythe untadi after earnings call

Ha ha ...

 

 

but I don’t think it will hold into market close man it will fade and bring all fang semi down with it .. tech clearly showed today  that they are waiting on nflx er 

[Nellore Pedda reddy]

8 minutes ago, macha said:

Time Warner impact enta untado telvadu gani Disney vastey nflx ki kasta kalam.. Disney has huge content already 

Yes, with newly acquired fox, and existing Marvel, Lucas film and Pixar brands, Disney will give Netflix a hard time 

[Guest]

44 minutes ago, macha said:

Ha ha ...

 

 

but I don’t think it will hold into market close man it will fade and bring all fang semi down with it .. tech clearly showed today  that they are waiting on nflx er 

ee earnings seasons tho ade baada..FANG lo yem jarginaa anni stocks ki effect untadi thut