The 2018 Q3 Report of Netflix shows that the streaming service is outgrowing its estimates. According to this estimates, the company was able to increase subscriber additions while upgrading the per-share price of the company beyond the forecast. The report also marks a commendable increase in the overall revenue of the service. It was able to generate an income of $4 Billion, which is the same as the consensus estimate. The same way, the company is showing incredible growth when it comes to earnings per share. The earnings per share were expected to hit 68 cents, but it has gone to robust 89 cents instead.
The real game-changer was the ability to increase subscribers in domestic and international levels. Netflix is shown to have added 6.96 Million customers during the third quarter of 2018 alone. Compared to the 5.15 Million of the second quarter, the growth cannot be ignored in any case. In the forecast for the Q4 section of the report, Netflix expects to add 9.40 Million subscribers by the end of the year. It means that the company is becoming more and more confident about the popularity and strength day by day. Netflix also observed a noticeable betterment of domestic and international subscriber additions overall.
Netflix has also given a glimpse at the strategy it is going to follow in the fourth quarter. The company would be enhancing the partnerships with TV providers and others. More importantly, however, Netflix would be investing more in original content production. It should be noted that content from Netflix Studios — shows like Stranger Things, Sacred Games, Big Mouth, The Kissing Booth and Nailed It, to mention a few — gained widespread attention and critical acclaim in no time. The company believes that it should focus more on original production instead of licensing others’ content.
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