The New Netflix Quarter One Results Are In, And It’s A Mixed Bag

Netflix has become so integrated into popular culture, it is not just a brand, but has also become [...]

By PopCulture.com Staff

Netflix has become so integrated into popular culture, it is not just a brand, but has also become a verb. To "Netflix" something has become a shorthand way of saying you'll watch something on a streaming service, much like one might order a "Coke" when looking to drink any type of cola or ask for a "Kleenex" when looking for a tissue. Despite its notoriety in the world of streaming media, the service's numbers do fluctuate as a direct result of the programs they offer, as evidenced by the statistics in profits and subscriptions in the first quarter of 2017.

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In net income, Netflix reported huge increases, going to $178.2 million from $27.7 million in the period last year, with revenues being up 35% to $2.64 billion.

Profits might have been up, but unfortunately, new user subscriptions fell short of what the company was hoping for. The company hoped to gain 1.59 million new subscriptions domestically, but only achieved 1.43 million. Internationally, the company was aiming for 3.68 million but only managed 3.53 million.

Netflix CEO Reed Hastings attributed the lack of new users on changing the release schedule of the fifth season of House of Cards from Q1 to Q2.

"We have come to see these quarterly variances as mostly noise in the long-term growth trend and adoption of Internet TV," Hastings said.

The original films he's been bringing subscribers of the service will be integral facet going forward, as he claims he hopes to "attract and delight members at better economics relative to licensing movies under traditional windowing."

Continuing the discussion of original films, Hastings said that since the subscribers technically fund the films, then "they should be the first to see them. But we are also open to supporting the large theater chains, such as AMC and Regal in the U.S., if they want to offer our films, such as our upcoming Will Smith film Bright, in theaters simultaneous to Netflix. Let consumers choose."

DirecTV Now and YouTube TV have entered the realm of streaming services, but Hastings says these services "will likely be more directly competitive to existing [pay TV] services since they offer a subset of the same channels at $30-$60 per month."

At this time, it sounds like Netflix is going to continue to avoid offering subscribers sporting events, as Hastings reveals, "That is not a strategy that we think is smart for us since we believe we can earn more viewing and satisfaction from spending that money on movies and TV shows."

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[H/T Deadline]

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