Apr. 28, 2014, 10:10 AM
Apr. 23, 2014, 7:29 PM
- Net neutrality supporters won't like this: The NYT and WSJ report the FCC will propose rules tomorrow that let ISPs charge content providers extra for priority access to their networks. The commission will continue prohibiting ISPs from limiting or blocking individual services.
- FCC chairman Tom Wheeler has already hinted the commission could make such a move. Today's reports come after an appeals court threw out the FCC's existing neutrality rules in January; Netflix (NFLX) shares fell on the ruling.
- Netflix, which accounts for a giant chunk of downstream U.S. broadband traffic, recently joined other Internet giants in paying direct peering fees to Comcast; that quickly led to a big improvement in Comcast's Netflix streaming speeds. But Reed Hastings has made it clear he's not thrilled with the deal, and wants tougher neutrality laws imposed.
Apr. 23, 2014, 1:22 PM
- Netflix (NFLX -5%) announces it will launch an original Spanish-language series for the first time in 2015
- The company ordered 13 episodes of a comedy about feuding soccer team heirs called Nosotros los Nobles.
- What to watch: During the firm's earnings call (transcript) earlier this week, CEO Reed Hasting said the company is "very confident" that it will see success in Latin America. Despite the optimism, analysts forecasting international subscriber growth for Netflix have had a tough time getting a handle on where the ceiling is for the Latin American nations.
Apr. 23, 2014, 9:20 AM
Apr. 22, 2014, 9:14 AM
Apr. 22, 2014, 8:17 AM
- "The company is pulling the trigger on price hikes, delivering better operating leverage internationally than we expected, and meeting lofty subscriber growth expectations domestically while beating them internationally," says FBR's Barton Brockett, boosting his price target to $393 from $356, but not seeing enough upside to raise his Market Perform rating.
- Raymond James pulls its Underperform rating on the stock.
- Cantor Fitzgerald upgrades Netflix (NFLX) to a Buy with $425 price target.
- Janney's Tony Wible reiterates his Buy rating and $450 price target.
- Calling Q1 "strong," Needham's Laura Martin reiterates her Buy and $525 price target.
- Shares +7.1% premarket
- Previous earnings coverage
Apr. 21, 2014, 5:45 PM
Apr. 21, 2014, 5:03 PM
- Netflix's (NFLX) U.S. streaming contribution margin rose to 25.2% in Q1 from 23.4% in Q4 and 20.6% in a year ago. International contribution margin improved to -13.1% from -25.9% in Q4 and -54.2% a year ago.
- U.S. margin is expected to further improve to 26.7% in Q2, and international margin is seen improving to -3.9%. Netflix's price hikes should provide a boost to Q3 margins.
- Optimistic though it is about the ability of its international ops to turn profitable this year, Netflix nonetheless expects international expansion to pressure Q4 free cash flow.
- The company also plans to ramp investments in marketing its original content, albeit while "spending less on direct-response advertising such as banner ads touting free trials."
- Having already taken shots at Comcast in his net neutrality manifesto, Reed Hastings has now come out against the Time Warner Cable deal. "Comcast is already dominant enough to be able to capture unprecedented fees from transit providers and services ... The combined company would possess even more anti-competitive leverage to charge arbitrary interconnection tolls."
- NFLX +6.8% AH. Q1 results, guidance/details, shareholder letter.
Apr. 21, 2014, 4:15 PM
- Netflix (NFLX) expects Q2 EPS of $1.12, above a $1 consensus. The company plans to raise prices by $1-$2/month (depending on the country) later in Q2 for new members. Existing members will maintain their current prices "for a generous time period."
- 2.25M U.S. streaming subs were added in Q1, in-line with guidance. 1.75M international subs were added, beating a forecast of 1.6M. 200K DVD subs were lost, lowering the total base to 6.7M.
- Netflix ended Q1 with 35.67M U.S. streaming subs, and 12.68M international subs. It expects to add 520K and 940K U.S. and international subs in Q2, respectively.
- The company declares its international ops are "on a path to achieve profitability this year."
- Q1 free cash flow was $8M vs. $5M in Q4 and -$42M a year ago. Streaming content obligations are at $7.1B vs. $7.3B at the end of Q4 and $5.7B a year ago.
- Q1 results, shareholder letter
Apr. 21, 2014, 4:02 PM
Apr. 21, 2014, 12:10 AM
Apr. 20, 2014, 5:35 PM
Apr. 17, 2014, 1:03 PM
- Netflix (NFLX +3.6%) is in talks with Vodafone (VOD +1.1%) about a deal that would give the giant international carrier's subs "free access to Netflix content for a period of time," Bloomberg reports.
- Vodafone has majority ownership of networks in 15 European countries, including three Netflix markets - the U.K., Ireland, and the Netherlands. The company already has deals with Spotify and Sky Sports that provide free content access to new U.K. 4G subs.
- The report comes as AT&T tries to get Netflix and other streaming service providers to sign up for its Sponsored Data program, which allows content providers to subsidize customer data usage.
- Netflix, boosted by a morning Pac Crest upgrade, is trading near its session highs.
Apr. 17, 2014, 7:45 AM
Apr. 15, 2014, 10:27 AM
Apr. 8, 2014, 12:37 PM
- Amazon (AMZN +3%) made a big deal earlier today about growing its number of video streams at a rate fast enough to surpass Hulu and Apple over the last year, but didn't say much about Netflix (NFLX +3.5%) in its press release.
- The same streaming data from Qwilt cited by Amazon shows that Netflix held 57.5% of the video streaming market in March, compared to Amazon's 3% share.
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Netflix Inc operates as an Internet television network providing TV shows & movies which include original series, documentaries & feature films. The Company has three segments namely Domestic streaming, International streaming & Domestic DVD.
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