Netflix presented its results for the first quarter of its fiscal year 2023, a period in which it has registered a profit of 1,305 million dollars, which implies a drop of 18.2% in its profits from the 1,597 million harvested in the same period of 2022. Earnings per share were $2.88, down from $3.53 a year ago, but higher than the $2.86 forecast by consensus. The firm’s titles have fallen by up to 4% in the “after hours”.
Revenues in the period have been 8,162 million dollars, which represents an increase of 3.7% in the year-on-year comparison, although it remains below the consensus forecast, which expected 8,180 million.
“Operating income totaled $1.7 billion vs. $2 billion in the first quarter of 2022, above our guidance forecast of $1.6 billion due to continued management of hiring calendar spend and content spend,” the company said.
During the first quarter of the year, the streaming platform increased its subscriber list by 1.75 milliona figure that has also disappointed the market, which expected the adhesion of 2 million new users.
“In the first quarter, we had several major series and movies return, demonstrating our growing ability to develop stories across genres, including Outer Banks, You, Ginny & Georgia, I’m Georgina, the new installment of Glory and a great sequel to our hit movie Murder Mystery“he adds.
The company has also highlighted that his new ad plan has allowed him to “offer consumers a lower price”and has ensured that this display modality has improved its reception expectations.
Furthermore, he decided postpone measures against password sharingimplying “that some of the expected membership growth and revenue benefit will fall in the third quarter rather than the second.”
Netflix was dethroned by Amazon Prime
In the US, Netflix fell to second position and Amazon Prime Video rose to first place in market share, which has 21%. Netflix was second with 20% and Disney is in third place.
For more than a decade, Netflix has been the biggest player in the streaming industry. No rival was capable of standing up to the big N, and that there were other platforms on the market when Netflix landed.
But, the different movements of the company, added to the arrival of platforms like Disney + or HBO Max, have caused Netflix customers to jump to other platforms little by little.
In addition, the case of Amazon Prime Video is a study. The online sales giant has made a sublime move by offering its platform “free”, since it is included in Amazon Prime, the Amazon subscription that includes free shipping among many other advantages.
Source: Ambito
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