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Netflix will test a cheaper pricing tier, possibly in Asia
Netflix is exploring ways to bring more subscribers into the fold, and it's set to test a cheaper version of its streaming service. CEO Reed Hastings confirmed the plans to Bloomberg, and while it's not clear where or when such a trial would take place, Asia seems the most likely region.
Netflix's shows didn't pull in as many new customers as expected
Netflix is spending billions of dollars on new shows and movies this year, with an expectation that this will add to its subscriber base. Unfortunately, over the last three months, that plan didn't work quite as well as it had predicted. In April the company notched 125 million subscribers and predicted it would add 6.2 million more. Today it announced numbers (PDF) that CEO Reed Hastings called "strong but not stellar" growing by 5.15 million customers worldwide with about 670,000 of in the US compared to the 1.2 million it anticipated. Even that number isn't too shabby, since last year during the same period it added 5.2 million people to pass the 100 million subscriber mark. The letter did highlight all of those Emmy nominations, which show that it has delivered quality along with the quantity, plus much of the highly-anticipated content that has yet to debut in 2018. What it didn't go into was any note of the "Ultra" price testing users recently spotted in Europe, or the public response to possible feature restrictions and higher prices. Netflix will stream a video of its earnings call at 6 PM ET on YouTube, and if we hear any interesting answers to those questions or others then we will update this post. Update: The video call is live (embedded after the break), and begins with execs saying the "fundamentals have never been stronger" citing the forecasting as incorrect this time more than any factor slowing growth.
Comcast is bundling Netflix into cable packages
It may sound strange at first, but the latest option in Comcast's Xfinity cable bundle is... Netflix. Despite their differences, the two have forged a partnership lately, with the Netflix app included on Comcast's X1 platform since 2016 (with access by voice, universal search and recommendations) and already available as an add-on through customer's cable bills. Comcast wasn't specific about the "new and innovative" offers it will roll out, saying they will vary by market and are available to both new and existing customers. No matter how customers pay for or access Netflix streaming, though, it still counts as part of their 1TB data cap.
Facebook already hit with four lawsuits over Cambridge Analytica (updated)
It has been a week since the bombshell reports on Cambridge Analytica's use of Facebook user data dropped and already the social media giant is facing at least four lawsuits. Along with a class action suit filed earlier this week on behalf of Facebook users whose data was obtained by Cambridge Analytica, three shareholders have also filed their own complaints.
Netflix isn't chasing the competition into sports or live TV
Fresh off of its Oscars win for Icarus, a documentary about Russia's doping epidemic in sports, Netflix held a press event at its Hollywood headquarters. There, inside a 280,000-square-foot, state-of-the-art studio that it just opened last year, CEO Reed Hastings talked about the state of Netflix and the industry as a whole. The setting seemed fitting, considering the company is planning an $8 billion investment in original content for 2018 alone. That programming strategy is what makes Hastings confident that Netflix's future is bright, especially as it faces increased competition from the likes of Amazon, Hulu and, soon, Disney. The latter of which is also a partner, since it owns all of the Marvel franchises that Netflix has built a mini-verse around.
Netflix's CEO plans on putting buffering to bed
It's no secret that video streaming is king right now and that the binge-watching craze Netflix helped establish is making other TV providers rethink how they offer content to customers. Here at Mobile World Congress, the company's CEO, Reed Hastings, was on hand to discuss global expansion, the future of television and the challenges of dealing with data caps.
Netflix expects HBO to go binge-first in an 'internet TV world'
Netflix just announced its final earnings report for 2016 (PDF), revealing that it grew by seven million customers to 93.8 million. That's two million more than it had projected, up more than 25 percent for the year and puts the 100 million benchmark squarely in its sights for 2017. Beyond revealing that House of Cards will launch in Q2 instead of Q1 this year, Netflix mentioned the strong performance of original series like The OA and 3%. Regarding the latter, Netflix says it was watched by "millions" of US viewers and is the first Portuguese-language show to travel that way.
Netflix CEO jokes that the future of entertainment could be drugs
Netflix is one of the most successful entertainment companies in the world, and it did so by constantly looking for ways to reach people. CEO Reed Hastings said in an WSJD Live interview that in the early days, they licked envelopes for DVD-by-mail, slowly transitioned to streaming, and then started to make their own content when they couldn't get what they wanted from studios. So what does the future hold? Well, Hastings said it could be VR, it could be gaming, or it could be, uh, pharmacological.
Netflix is putting five percent of its cash budget into films
Now that Amazon is offering a monthly video subscription and Netflix's delayed price hike is kicking in, how are things going for the video streaming king? According to its just-released Q1 2016 earnings report (PDF): Pretty well. Netflix beat its own estimates by growing to 81.5 million customers worldwide (with nearly 47 million of them in the US), while releasing a new original series or film every week. Expect more of those films too, as Reed Hastings confirmed Netflix will release Bright in 2017 starring Will Smith, after debuts this year that include Brad Pitt's War Machine and Mascots with Christopher Guest. The company "will invest 5 percent of our cash budget in original films," and is also getting ready to launch its "near live" 3-nights-per-week talk show with Chelsea Handler.
Netflix chief starts a $100 million education fund
Netflix CEO Reed Hastings may plan to make a lot of money in the near future, but he's also bent on giving some of that money away, too. He's starting up the Hastings Fund, a $100 million money pool that will contribute to education. While the first donations are modest ($1.5 million for the United Negro College Fund and Hispanic Foundation of Silicon Valley), there's talk of more -- and establishing the fund shows this won't be the end of his philanthropic efforts.
Netflix execs talk 'Ridiculous 6' popularity, censorship
In their first Q&A session since launching a (nearly) global internet TV network, Netflix CEO Reed Hastings and content head Ted Sarandos sounded appropriately pleased with themselves. Sarandos said the recent debut of Adam Sandler's Ridiculous 6 made it the "most-watched movie in Netflix's history" over the first 30 days. Previously he'd said Beasts of No Nation was the service's most-watched movie in its first week of release and that it had over 3 million views in North America after two weekends, but he did not provide any numbers for Sandler's movie. Most of the questions focused on what content would be available worldwide, and from them, it's clear that Netflix is not only operating differently from most others in the TV business but also sees its opportunities in a different way. While Sarandos called movie windowing "managed dissatisfaction," Hastings presented a goal of global availability. But Netflix has to operate under preexisting restrictions for now.
Netflix Everywhere: Now streaming (almost) worldwide
Today during a keynote speech at CES 2016 (watch live here), we learned that Netflix is working with LG to extend its streaming service throughout the Middle East, Asia and Europe. In a press release, LG said the two will "combine efforts" to provide prepaid access. Last year Netflix mentioned that it was working with partners to make it easier to tune in to streaming, and it appears that LG is an ideal teammate with its newly upgraded webOS 3.0, which puts streaming video on par with other sources. At the keynote today, before previewing trailers from upcoming series The Crown and Baz Luhrmann's The Get Down, content exec Ted Sarandos said Netflix will offer 600 hours of original programming in 2016. CEO Reed Hastings closed the speech with one big update: As he was talking, the company flipped the switch in 130 countries, and he said the service is available "around the world." The company also added support for Arabic, Korean, and simplified and traditional Chinese to supplement the 17 languages in which Netflix was already available. The press release reveals the last holdouts are China -- where Reed says he hopes to provide service soon -- as well as North Korea, Syria and Crimea.
Netflix will produce original Bollywood and anime programs
Netflix CEO Reed Hastings announced the service will offer more original content in 2016, including Bollywood and anime programming. During his talk with New York Times journalist Andrew Ross Sorkin at the DealBook conference, he said that the company is always looking at new ways to introduce unique shows that other streaming services don't have. Next year Netflix is looking to spend around $5 billion on content alone and since it launched in Japan on September 2, there's never been a better time to broaden the scope of programming with an international focus. What type of Bollywood or anime programs will Netflix release? Hastings didn't mention specifically, only noting that it has taken risks before and they've paid off (like Narcos, for example). Get ready for longer bouts of aimless scrolling on nights you're feeling indecisive.
Netflix's European tour comes to an end in Belgium and Luxembourg
This week began with Netflix launching streaming video service in France, and since then it's added Germany, Austria and Switzerland to the list. Belgium and Luxembourg are the final two on the list this fall, putting them among the 40 or so countries where Netflix now offers its services. CEO Reed Hastings (pictured above at the launch event in Berlin) called out the " incredible viewer enthusiasm" for the service's original series, including the ones coming to Europe for the first time like Orange is the New Black and Bojack Horseman. Upcoming Netflix series will remain exclusive to the service as well -- some of the existing ones like House of Cards are tied up in exclusivity deals with other broadcasters for now. Netflix is also the only place to (legally) watch a few other shows like From Dusk Till Dawn, Fargo and Penny Dreadful. No matter what country you're in, if you're looking for the something to watch we have a few suggestions on how to find it. If you just want the exclusives though, a recent tweak to the website means you can just search for "Netflix" and they will appear.
Netflix is going to raise prices for new customers, and come to US cable DVRs
Our latest update on how Netflix is doing is here, and buried within the earnings details the company revealed two announcements that have been a long time coming: it's raising prices for new customers, and it is (after years of rumors) going to offer service on cable-provided DVRs in the US soon. The price hike later this quarter will be for new members only and is expected to be a "one or two dollar" increase, while current subscribers will be grandfathered in at their current rates "for a generous time period." The big question for Netflix? Now at 48 million customers strong (37.5 million in the US), can it push through a price hike without the customer losses it experienced the last time it changed pricing? In January it increased prices in Ireland by one euro per month and grandfathered current customers in at their existing price for two years, and says it saw "limited impact" as a result. Netflix executives will take investor's questions live on YouTube in just a few minutes, watch here or check after the break for any interesting details.
AT&T thinks increased bandwidth costs are Netflix subscribers' problem
AT&T's swinging back at Netflix CEO Reed Hastings' recent assertion that ISPs (internet service providers) should shoulder the cost of increased bandwidth demands. In a post on AT&T's Public Policy Blog, Senior EVP Jim Cicconi denounced Hastings' desire for a "cost-free delivery" agreement with ISPs, saying that it unfairly shifts the burden of infrastructure cost to AT&T and its subscribers rather than to Netflix's own customer base. As Cicconi views it, that subscriber base is the very one responsible for the increased traffic demands and resulting need to build out additional facilities, and should therefore bear the brunt of a fee hike. In an attempt to highlight what he sees as Hastings' "arrogant proposition," Cicconi goes on to point out that this "self-righteous" streaming model is akin to Netflix "[demanding] a customer's neighbors" pay the cost of its DVD mail delivery service. The comparison isn't quite apple-to-apples, but his point is fairly straightforward: if you're using Netflix, it's up to you to pay for high-quality streams. In other words, it's not AT&T's problem. And also, AT&T just doesn't want to pay for Netflix's "good business fortune." But that much should already be crystal clear. [Image credit: Getty]
Netflix added 3 million subscribers worldwide in Q1, will offer a 4-stream $11.99 plan
Netflix has reported its financial results for the first quarter of 2013, and in that period it's added over 3 million customers worldwide. Domestically it added 2.03 million customers alone, pushing its total number over 30 million (including trial users) in the US. That means it's passed HBO in paying subscribers for the first time ever, while notching $2.69 million in net profits on $1.02 billion in revenue for the quarter. Internationally there were over a million new sign-ups and it's planning to launch in a new European market during the second half of this year, which we should hear more about on its Q2 earnings call in July. One change all users will notice is to its package of streaming plans, as CEO Reed Hastings mentioned an $11.99 per month option is incoming that will allow subscribers to stream as many as four videos simultaneously, up from the current official limit of two. There's some question over whether Netflix will begin to crack down harder on account sharing, but Hastings claims he expects less than one percent of users to opt for the new plan. The company is also continuing to test the personalized profiles we got a peek at during CES, and expects to roll them out "in the coming months." Another major note is that as it expands its suite of original content, it's shifting focus away from some of existing "bulk, nonexclusive" licensing deals and will let a major one from Viacom expire in May. Specifically referenced is content from Nickelodeon, MTV and BET, although it's negotiating for access to particular shows. In the future, its preferred option will be exclusive deals with the studios that produce the shows, like the one it announced earlier this year with Warner. Check after the break for a few more details, including updates on the progress of some of its original series.
Netflix CEO claims Amazon losing up to $1 billion a year in streaming video war
Netflix isn't sinking, but it's certainly not the soaring brand it once was and has endured its fair share of struggles over the last several years. But, if you think Reed Hastings is shaking in his boots over encroaching competition you'd be wrong. The CEO says that Amazon will pose a legitimate threat to its streaming video dominance, but that day is still a long way off. He claims that the Kindle purveyor is losing between $500 million and $1 billion a year as it builds its empire and secures licensing rights. Of course, Hasting's comments during an interview with Dow Jones are largely speculative; based on the value of deals in which the two have competed directly. Then again, there seemed to be some implicit admission of the costs and struggles associated with competing in the subscription video sphere during its Q3 earnings report. The company lowered its forecast for the next quarter, saying it could lose as much as $490 million.
Netflix Q2 2012 earnings: 530,000 more US subscribers and a return to profitability
Netflix recently let it drop that its users clocked in more than one billion hours of content-viewing in the month of June alone, although the big question for CEO Reed Hastings is how that relates to the company's subscriber base. The results are in from its Q2 2012 earnings report, and it's claiming 27.56 million streaming subscribers worldwide, up from 26 million last quarter. In the US alone that includes 23.94 million customers, after it reported 23.4 million in Q1, while DVD customers dropped by 850k to 9.24 million. While the number of new subscribers wasn't as high as some had hoped, the good news is the company is finally back in the black, with $889 million in revenue providing $6 million in net income. On the flip side, a plan to launch service in an "additional attractive European market" in Q4 is expected to result in temporary losses, but we'll find out more about those plans later in Q3. One other issue that has been resolved is the search for a new Chief Marketing Officer resulting in the hiring of Kelly Bennett, formerly a marketing executive with Warner Bros. This morning Verizon and Redbox began to carefully pull back the cover on their competing offering, and Amazon has also been making significant waves in the space. However in response, Netflix says Amazon and Hulu Plus have yet to gain meaningful traction in relation to its viewing hours, and it expects Redbox Instant to face a "big challenge" to break into the existing top 3. Its current content deal with Epix will lose online exclusivity "shortly" although it will still offer those titles, we'll see if any of the competition joins in. Their biggest competition however, is expected to come from efforts like Comcast's new X1 and Sky's Now TV, while for HBO, the possibility of cooperation is actually raised (again). We'll see if that happens or if there are any more juicy details revealed on the investor call in a few minutes.
DOJ looking into whether Comcast, other TV giants are unfairly (knee)capping Hulu, Netflix
The Department of Justice may have taken Netflix chief Reed Hastings' net neutrality complaints about Comcast as a lot more than just sour grapes. It's reportedly conducting an investigation into whether Comcast, AT&T and other TV providers are anti-competitive in their data restrictions. The Wall Street Journal cites primary concerns that Comcast's Xfinity TV cap exemption might unfairly punish competing services, but also claims that officials are worried the caps themselves steer viewers away from internet video, helping the incumbents cling to legacy TV for just a little while longer. On top of its cap anxiety, the DOJ may be looking into policies requiring traditional TV subscriptions just to watch online. None of the involved parties have commented on or confirmed the investigations, so there's no guarantee of any full-fledged lawsuit. Still, while TV operators insist they're being fair and need to keep data use in check, that might not deter legal action when the DOJ has supposedly questioned Hulu, Netflix and other relative newcomers who feel they're being squeezed. When Sony postpones its IPTV goals after fretting over US data caps, it's hard to imagine that there aren't at least a few raised eyebrows in Washington.
