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Netflix (NFLX) Adds Profile Transfer Feature Ahead of Q3 Earnings
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Netflix (NFLX - Free Report) recently announced the addition of the Profile Transfer feature that will help account-sharing users keep their personalized recommendations, viewing history, My List, saved games and other settings.
The availability of this much-desired feature is encouraging for account-sharing users as this will ensure that they don’t lose any data at the time of opening their account.
Account sharing has been a menace for Netflix. The company estimates that Netflix is being shared with more than 100 million additional households, including over 30 million in the United States and Canada.
Netflix is suffering from stiff competition in the streaming space from services launched by Apple (AAPL - Free Report) , Disney (DIS - Free Report) and Comcast (CMCSA - Free Report) .
In second-quarter 2022, Netflix lost 0.97 million paid subscribers globally, lower than its estimate of losing two million users. Netflix had added 1.54 million paid subscribers in the year-ago quarter. Netflix currently expects to gain one million paid subscribers in the third quarter of 2022.
Netflix is set to report third-quarter 2022 results on Oct 18. The company expects its third-quarter earnings to be $2.14 per share, suggesting a year-over-year decline of 20%. Netflix expects total revenues to increase 4.7% year over year to $7.838 billion.
New Ad Tier to Boost Netflix’s Subscriber Base
Netflix, in June, confirmed that it is set to launch (on Nov 3) an ad-supported tier to reduce its losses and bring more users to the platform. The Basic with Ads tier will cost $6.99 a month in the United States. At launch, ads will be 15 or 30 seconds in length and will play before and during shows and films.
Netflix hired two of Snap’s top executives to help build its ad business. This Zacks Rank #3 (Hold) company also inked a partnership with Microsoft, which makes the latter its technology and advertising sales partner. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, Netflix is expected to face stiff competition in the ad-supported streaming market. Disney’s streaming service, Disney+, is also set to offer its ad-supported tier starting Dec 8, 2022. The company has reached out to affiliates and recently signed a new agreement with the ad-tech company, The Trade Desk, as part of an effort to boost the commercial inventory it sells via connected TV.
Apple’s streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso.
Comcast’s Peacock also offers a free-to-watch tier with ad support that has about 40,000 hours of content. Peacock is well poised to grow, owing to its vast library of IPs and new productions.
Nevertheless, Netflix is expected to continue dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content.
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Netflix (NFLX) Adds Profile Transfer Feature Ahead of Q3 Earnings
Netflix (NFLX - Free Report) recently announced the addition of the Profile Transfer feature that will help account-sharing users keep their personalized recommendations, viewing history, My List, saved games and other settings.
The availability of this much-desired feature is encouraging for account-sharing users as this will ensure that they don’t lose any data at the time of opening their account.
Account sharing has been a menace for Netflix. The company estimates that Netflix is being shared with more than 100 million additional households, including over 30 million in the United States and Canada.
Netflix is suffering from stiff competition in the streaming space from services launched by Apple (AAPL - Free Report) , Disney (DIS - Free Report) and Comcast (CMCSA - Free Report) .
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
In second-quarter 2022, Netflix lost 0.97 million paid subscribers globally, lower than its estimate of losing two million users. Netflix had added 1.54 million paid subscribers in the year-ago quarter. Netflix currently expects to gain one million paid subscribers in the third quarter of 2022.
Netflix is set to report third-quarter 2022 results on Oct 18. The company expects its third-quarter earnings to be $2.14 per share, suggesting a year-over-year decline of 20%. Netflix expects total revenues to increase 4.7% year over year to $7.838 billion.
New Ad Tier to Boost Netflix’s Subscriber Base
Netflix, in June, confirmed that it is set to launch (on Nov 3) an ad-supported tier to reduce its losses and bring more users to the platform. The Basic with Ads tier will cost $6.99 a month in the United States. At launch, ads will be 15 or 30 seconds in length and will play before and during shows and films.
Netflix hired two of Snap’s top executives to help build its ad business. This Zacks Rank #3 (Hold) company also inked a partnership with Microsoft, which makes the latter its technology and advertising sales partner. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, Netflix is expected to face stiff competition in the ad-supported streaming market. Disney’s streaming service, Disney+, is also set to offer its ad-supported tier starting Dec 8, 2022. The company has reached out to affiliates and recently signed a new agreement with the ad-tech company, The Trade Desk, as part of an effort to boost the commercial inventory it sells via connected TV.
Apple’s streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso.
Comcast’s Peacock also offers a free-to-watch tier with ad support that has about 40,000 hours of content. Peacock is well poised to grow, owing to its vast library of IPs and new productions.
Nevertheless, Netflix is expected to continue dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content.