10 Updates

Watch Out HBO, Netflix Is After You

Apr 21 2014, 4:30pm CDT | by

Tough nosed politician Frank Underwood, the lead character in hit Netflix series House Of Cards, will stop at nothing to get what he wants. If the video streaming powerhouse’s management is anything...

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14 weeks ago

Watch Out HBO, Netflix Is After You

Apr 21 2014, 4:30pm CDT | by

Tough nosed politician Frank Underwood, the lead character in hit Netflix series House Of Cards, will stop at nothing to get what he wants. If the video streaming powerhouse’s management is anything like their star HBO better watch out. In a letter to shareholders Monday Netflix CEO Reed Hastings and CFO David Wells were not shy about their ambition to overtake the reigning content king.

Hasting and Wells first pointed out that a Morgan Stanley report from March showed that 17% of consumers surveyed felt Netflix was the service that offered the best original programming, “second only to HBO.” Then the men concluded their seven page letter by saying, “We are approaching 50 million global members, but that is far short of HBO’s 130 million. We are eager to close the gap.”

Netflix’s first quarter earnings report shows that the company is on its way.

Netflix reported $1.1 billion in first quarter revenue, up 36% from the same period last year. Net income came in at $53 million, up from just $3 million a year ago and almost $2 million ahead of Wall Street analysts’ consensus estimate. Earnings per share were 86 cents, 4 cents ahead of the Street estimate.

As the company previously estimated, it finished the first quarter with 48 million subscribers, adding 2.3 million subscribers in the United Stated and 1.8 million in international markets.

Looking to the second quarter, the company expects revenue to come in at $1.13 billion, net income to be $69 million and earnings per share to come in at $1.12. By the end of the quarter Netflix anticipates having 49.8 million members.

Netflix shares initially turned to the red in after hours trading following the release, but the fan favorites’ fortune changed quickly and shares were up around 6.5% to $371 within 45 minutes of the release. In recent memory, however, Netflix has been a momentum name known to shoot up on not much news at all.

The stock gained 300% in 2013 but is down about 4% so far this year. Shares shot up 16% within seconds of its stronger than anticipated fourth quarter report in January, hitting the $450 range in mid March. By the end of that month the video streaming phenomenon had shed close to $100 in value amid a broad tech and momentum sell-off.

So there are at least two potential causes for the relatively muted investor response Monday.

First is that investors were simply expecting more. According to a report by broadband data company Procera, 16% of the Netflix subscribers on one U.S. cable provider watched at least one House Of Cards episode in the first 24 hours the hit show’s second season was live (Valentines Day). That’s eight times more people than watched when the first season launched a year earlier. This news led many to believe the 48 million was a conservative subscriber growth estimate.

“House of Cards, for which Season 2 debuted in February, attracted a huge audience that would make any cable or broadcast network happy,” wrote Hastings and Wells. “The on-demand nature of Netflix means that as we promote Season 2, we can still see significant new enjoyment of Season 1.”

The other reason is that Netflix announced plans to raise its prices. New members will pay either $8.99 or $9.99 per month for Netflix, while existing members will stay at the $7.99 rate that has been in effect since the company introduced streaming in 2010. The company expects to roll out the increase later this quarter. In its last earnings letter the company revealed it had been exploring a tiered pricing plan but said it was “in no rush to implement.”

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7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken int ...
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Update
8

7 weeks ago

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Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rej ...
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Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datu ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
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6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in compensation ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Must ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
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3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM20 milli ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
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1

8 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kidex) t ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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