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Netflix It’s set to report first-quarter earnings after the bell on Tuesday, and investors will be paying close attention to its subscriber numbers, especially for the ad category it supports.
Although Netflix will no longer provide subscriber guidance, it will continue to report the total number of users, both in the US and globally, each quarter.
Here’s what Wall Street expects, according to analysts surveyed by Refinitiv:
- Earnings per share: Expected $2.86
- he won: $8.18 billion expected
On Tuesday, Netflix said goodbye to what it started – a DVD mailer company, sending discs in red envelopes to customers. The company’s co-CEO, Ted Sarandos, said in a blog post that it would finally wind up its DVD business, which “continues to shrink.”
A year ago, Netflix reported its first subscriber loss in a decade, sending its shares plummeting, as well as those of its media peers. The results prompted Netflix and its streaming competitors to focus on profits over subscriber numbers.
The results of the new ad-supported level in the country will be our top priority. Last November, Netflix unveiled its cheapest tier with commercials, which costs $6.99 per month. The ad-supported tier came shortly after losing subscribers as the competition in streaming intensified.
Sarandos recently said that the company will likely offer several ad-supported tiers in the future.
Another focus for Wall Street will be Netflix’s crackdown on password sharing. Late last year, the company said it would begin implementing measures to get people who borrow from other accounts to create their own.
The company said more than 100 million households subscribe to the accounts, or about 43% of its global user base. Netflix said that affected its ability to invest in new content. Both the ad-supported option and the crackdown on password sharing are intended to increase revenue.
In February, Netflix outlined password sharing guidelines for four countries: New Zealand, Canada, Portugal, and Spain. The company said it will require users in those countries to select a “primary location” for their accounts, and allow users to create up to two “sub-accounts” for those who don’t live in their home base for an additional fee.
The company has yet to provide guidance on password sharing for the United States, although it is expected to do so this year.