It’s Showtime! Binge On Netflix!

While most of the companies around the world are fretting about the worsening COVID-19’s impact, Netflix Inc. (NFLX) is fortifying its presence as millions of people worldwide who are forced to stay at home due to the pandemic, embark to binge-watch online.

The online-video streaming giant offers a wide range of action blockbusters, Korean soaps, anime, sci-fi, Sundance films, zombie shows, kids cartoons and lot more to gorge on.

With over 167 million paid streaming memberships in over 190 countries enjoying TV series, documentaries and feature films across a wide variety of genres and languages, the world’s leading online-video streaming giant Netflix continues to witness its greatest streaming membership growth amid the Coronavirus outbreak.

Over the past five years…

The company has grown its revenue from $6.78 billion in 2015 to $8.83 billion in 2016, $11.7 billion in 2017, $15.8 billion in 2018, and $20.2 billion in 2019.

Net income rose from $122.6 million or $0.28/Shr in 2015 to $186.7 million or $0.43/Shr in 2016, $558.9 million or $1.25/Shr in 2017, $1.21 billion or $2.68/Shr in 2018, and $1.87 billion or $4.13/Shr in 2019.

Global streaming paid memberships at end of period totaled $70.8 million in 2015, $89.1 million in 2016, $110.6 million in 2017, $139.3 million in 2018, and $167.1 million in 2019.

Strong Subscriber Growth

Netflix added 8.76 million subscribers globally in the fourth quarter, above its forecast of 7.60 million, to end the quarter with 167.09 million subscribers. The company added 420,000 customers in the U.S. during the quarter, while it expected an addition of 600 thousand subscribers. International subscriber additions were 8.33 million, above its expectation of 7.00 million.

The company said subscriber additions were fueled by its broad slate of original programming and the worldwide adoption of streaming video.

Peer Performance

Walt Disney Co.‘s streaming service Disney+ now has 50 million paid subscribers globally, with the company achieving the milestone within five months after its U.S. Launch, propelled by the home trapped people, as they spend more time online due to lockdowns around the world caused by the coronavirus pandemic.

Last year, Walt Disney expected that Disney+ would have 60 million to 90 million subscribers around the world by the end of fiscal 2024. But, it has almost reached the target within five months. As of February, Disney+ recorded 28.6 million paid subscribers.

In the past two weeks, Disney+ launched in eight Western European counties including the UK, Ireland, France, Germany, Italy, Spain, Austria, and Switzerland. In addition, the service became available last week in India, where it is offered in conjunction with the existing Hotstar service. It already accounts for about eight million of Disney+’s 50 million paid subscribers.

Disney+ was launched in the U.S., Canada and the Netherlands on November 12, 2019.

Apple Inc. (AAPL) also launched its original video subscription service Apple TV+ in November last year, adding to the competition. The service is available in more than 100 countries and regions.

In the U.S., Disney+ costs $6.99 per month or $69.99 per year, while Apple TV+ is available on the Apple TV app for $4.99 per month. In comparison, the monthly charge for Netflix and Amazon Prime is around $8.99.

Q4 Numbers

The Los Gatos, California-based Netflix’ Q4 net income was $587 million or $1.30 per share versus $134 million or $0.30 per share last year. Revenues for the quarter rose 30.6% to $5.47 billion from $4.19 billion last year. Analysts polled by Thomson Reuters expected earnings of $0.53 per share and revenue of $5.45 billion for the quarter. Analysts’ estimate typically exclude certain special items.

The video-streaming service provider said average paid streaming memberships rose 21% and ARPU increased 9% year over year.

“We had a strong finish to 2019, with Q4 revenue growing 31% year over year, bringing full year 2019 revenue to over $20 billion, while FY19 operating income rose 62% to $2.6 billion. During the quarter, we surpassed 100 million paid memberships outside of the US. Streaming entertainment is a global phenomenon and we’re working hard to build on our early progress,” said the company.

Netflix is due to release its Q1 results on April 20, with Wall Street analysts estimating earnings of $1.63 per share on revenue of $5.73 billion for the quarter. Netflix expects Q1 EPS of $1.66 on revenues of $5.73 billion. Also, the company expects to add 7.00 million memberships during the quarter.

Stock Movement

NFLX has been trading between $252.28 and $393.52 for the past one year, and closed Wednesday’s trade at $371.12, down $1.16 or 0.31%, with marketcap of 162.85 billion. Trading volume was 6.91 million versus an average volume of 7.91 million shares.

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