The results are in: Netflix is killing the game

With insane growth in Q4, Netflix is pulling away from their biggest competitors in the on-demand biz.


January 24, 2018

Content, ConTENT, CONTENT. In a world of too many channels, too many platforms, and too many channels of platforms, the golden age of on-demand content is upon us — and Netflix is leading the charge.

With a better than expected Q4, the binge-worthy network blew past Wall Street’s projections on Monday with a late-night share surge of more than 10%, putting them into a very exclusive club:  they are now one of only 59 companies in the S&P 500 worth at least $100B ($110B, to be exact).

A monster Q4

Netflix added more than 8m net subscribers to end the fiscal year (the highest in the company’s history), trouncing their projection of 6.3m.

They also made $3.29B in revenue, even after reporting a $39m loss in unreleased content and raising their prices 10% last year — a move Netflix (incorrectly) predicted may cost them subscribers.

Dang, Netflix, what’s your secret?

With premium content comes premium subs

Netflix’s current subscriber base equates to almost half of all US homes, and they’re still growing. They expect a growing international base to help boost their earnings to $3.6B in Q1, and by a full $1B on the year.

The company credits their subscriber increase to their “original content slate.” With fan favorites like Stranger Things, and a recent oscar nom for Mudbound, their highly expensive productions are proving to be worth the price hikes.

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