Finance

Netflix crowns excellent third quarter

Netflix crowns excellent third quarter

Streaming revenue surged 36%, reaching almost $4 billion in the quarter - a performance that matched Wall Street's forecasts of $4 billion.

But the Netflix cash burn, as it's called on the Street, is a worthy issue for investors to monitor as it's starting to change the complexion of the company's financials.

Subscriber growth is paramount and in this category, Netflix didn't disappoint.

Netflix's stock rose 7% to $371.08 on Wednesday.

Has Netflix's studio lost its touch?

The withdrawal of a nostalgic and addictively bingeable series such as Friends could become a major thorn in Netflix's side. Q4 is usually the most lucrative time for Netflix in terms of growth and revenue and there's no reason to see why this year will be any different. Nor did numerous new releases seem to break through. The Los Gatos, California-based streaming company released a record 676 hours of original programming in the third quarter, according to Cowen & Co.

The surge came as Netflix premiered a record amount of original programming, including new seasons of Orange Is The New Black and BoJack Horseman. Netflix has prepared for this, beefing up global programming and production as it approaches a ceiling in the United States.

Has Netflix caught on in Asia?

"The answer: an aberration, likely the results of a somewhat low volume of new content last quarter".

Netflix has spent aggressively to develop original content to lure new subscribers despite tough competition from services offered by Amazon and other outlets. Leave us a comment and let us know what you think. In July, Netflix said it is "starting to turn the corner" in many Asian countries. Wall Street analysts had expected Netflix to add about 5.2 million streaming customers in the quarter.

That paid off in terms of new subscribers.

As for earnings, Netflix generated $4 billion compared to the $3 billion it took in a year earlier. That number should top 35% this year.

India is already one of the biggest markets for YouTube, a chief competitor, and holds great potential for Netflix. It now has some 137 million subscribers worldwide.

Hastings, 58, suggested that he wasn't anxious about the competition. Next year, Disney, which bought the film and TV assets of Twenty-First Century Fox, is set to launch its streaming service, as is WarnerMedia, the amalgam of AT&T and Time Warner.

Netflix will spend how much?

The news broke a previous streak of five straight quarters in which subscriber growth exceeded expectations.