People stopped being afraid to take to the streets and Netflix-led streaming services were suddenly on the track. While during the first half of 2020, crowds trapped in the coronavirus quarantine ordered Netflix at an unprecedented pace, as soon as the prospects for the third quarter became apparent, digital television stocks shot down as much as 15 percent.
On the one hand, the company did not report the numbers that investors expected from it in the second quarter, and at the same time predicted lower viewership in the future than expected in times of coronavirus transformation of human life living outside into humanity staring on TV.
At first glance, the specific figures do not look bad at all: in the second quarter of 2020, Netflix had sales of $ 6.15 billion, operating income of $ 1.36 billion and net income of $ 720 million. This is a small but significant increase against the expected turnover of 6.08 billion. However, earnings per share were $ 1.59, and here is the first stumbling block: investors expected $ 1.81.
At the same time, the stock’s outlook for the third quarter, which is expected to be 6.33 billion in turnover and 1.25 billion in operating income and 954 million net income with net earnings per share of $ 2.09, was reflected in the decline in the value of shares. Although this represents a growth compared to the previous quarter, it is not the kind originally expected from the coronavirus spectator ride: 6.39 billion turnover.
The outlook for the status of new subscribers to the service plays a crucial role. Netflix expects 2.5 million new subscribers in the third quarter, half of the five million outlook on Wall Street, according to Bloomberg. By comparison, in the second quarter, the number of service subscribers increased by 10.1 million new subscribers (well above analysts’ estimates of 8.27 million), and Netflix closed the first half of this year’s gala tour with nearly 193 million subscribers.
Netflix obviously does not intend to just switch to the market by switching to another channel. This can be seen both from the personnel change that took place at the same time, as well as from his ongoing tendency to publish all the successes that can be achieved. Ted Sarandos, who has previously been in charge of content, was also named co-CEO of Netflix alongside CEO Reed Hastings – on the same day Netflix announced results in sales, sales and subscriber categories.
Fifty-five-year-old Sarandos is a person who is associated with the “Hollywood” dimension of this streaming platform. While Hastings, 59, took care of her running from Silicon Valley technology, Sarandos operates directly from the Los Angeles film studio.
The content is both alpha and omega for Netflix, and in honor of its results, even during the pandemic, it hit one audience hit after another on television screens (it has released more than 30 film premieres since mid-March), whether it was a high-budget and relatively award-winning film Chris Hemsworth in the lead role, or at least the debatable but extremely popular reality show like Too Hot To Handle.
Just before the release of the results and assumptions, Netflix also released a list of its 10 most watched films. This is an unprecedented move, as the platform usually keeps its numbers out of the public eye.
1. Extrication (99 million viewers)
2. V pasti (89 million viewers)
3. Justice according to Spenser (85 million viewers)
4. 6 underground: Secret operations (83 million viewers)
5. Murder on a yacht (73 million viewers)
6. Irish (64 million viewers)
7. Triple borders (63 million viewers)
8. The other one (59 million viewers)
9. Hole (56 million viewers)
10. Perfect date (48 million viewers)
At the same time, Netflix plans more original works for 2021 than this year. As the Engadget notes, The competition with other digital stations such as HBO Max or the newly launched Peacock is intensifying – and Netflix therefore intends to dig up its content, so to speak.
With Sarandos behind the wheel, the service can be expected to focus even more on its role at the top of the film industry.
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