A pair sits in entrance of a tv with the Netflix brand on it.
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Netflix’s second-quarter earnings report contained no bombshells, and that is simply effective for the corporate and its traders.
In current weeks, Paramount International has agreed to merge with Skydance Media. Warner Bros. Discovery is contemplating all choices for its future and will lose broadcast rights to the NBA.
Whereas the media and leisure panorama round Netflix is in a state of change, the world’s largest streamer is ok with the established order.
“If we execute nicely — higher tales, simpler discovery and extra fandom — whereas additionally establishing ourselves in newer areas like stay, video games and promoting, we consider that we now have much more room to develop,” Netflix stated in its quarterly shareholder letter. “As a result of after we delight individuals with our leisure, Netflix can drive larger engagement, income and revenue than the competitors. This in flip creates a extra liked and valued leisure firm — for our members, creators and shareholders — that we are able to strengthen and develop over time.”
Netflix labeled the streaming, pay TV, movie, gaming and branded promoting market as a $600 billion business by way of complete annual gross sales, noting the corporate accounts for about 6% of that income.
The streamer added greater than 8 million subscribers within the quarter. It now has greater than 277 million world prospects, making it by far the biggest subscription streaming service on this planet. Netflix’s market valuation as of Thursday’s market shut is $277 billion.
Nielsen statistics present Netflix because the second most-watched streaming service within the U.S., trailing solely YouTube. However fairly than fear about YouTube’s competitors, Netflix is content material to deal with the opposite 80% of the TV market, the corporate reiterated.
“Seeking to the longer term, we consider our greatest alternative is profitable a bigger share of the 80%+ of TV time (primarily linear and streaming) that neither Netflix nor YouTube has right this moment,” the corporate stated.
Whereas Warner and Disney introduced a brand new cross-company bundle in Could that can give customers the flexibility to purchase Max with Disney’s suite of streaming companies for a reduction, Netflix made a degree to say it feels no want to have interaction with the competitors.
“We have not bundled Netflix solely with different streamers like Disney+ or Max as a result of Netflix already operates as a go-to vacation spot for leisure because of the breadth and number of our slate and superior product expertise,” Netflix stated. “This has pushed business main penetration, engagement and retention for us, which limits the profit to Netflix of bundling instantly with different.”
Netflix’s focus stays constructing its promoting enterprise and including streaming subscribers on the again of its power of content material.
It is not essentially the most dramatic of narratives. It could not make for a terrific Netflix sequence.
However as an funding, shareholders will fortunately take it.
WATCH: Netflix has main beat on Q2 subscribers
