×

Earnings Watch Archives | Email alerts

July 17, 2019, 6:59 a.m. EDT

Netflix is about to pass yet another subscriber milestone

Earnings Watch: Netflix to hit 150 million paying customers and IBM/Red Hat will enjoy their public debut as tech results begin

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Netflix Inc. (NFLX)
  • X
    Walt Disney Co. (DIS)

or Cancel Already have a watchlist? Log In

By Jeremy C. Owens, MarketWatch

When Netflix Inc. reveals its subscriber additions Wednesday afternoon, it should pass a milestone: 150 million paying subscribers.

The streaming-video service is expected to cross that threshold when it reports second-quarter earnings, after ending the first quarter with 148.9 million. Netflix /zigman2/quotes/202353025/composite NFLX -1.85%  predicted that it would add 5 million paying subscribers in the second quarter, which would be its smallest increase since the first quarter of 2017; analysts on average expect a bit more, according to FactSet, predicting about 5.3 million subscriber additions, on average.

Full preview: Drama invades the typically sleepy summer earnings season

Netflix first passed 100 million paying subscribers exactly two years ago, in the second quarter of 2017. The pace has quickened since then, as the company has continued to spread across the globe; Analysts currently expect Netflix to pass 200 million subscribers by the end of 2020.

International growth has been the biggest boost to subscription numbers. When Netflix surpassed 100 million subscribers, it was pretty evenly split between U.S. and international customers. When Netflix reports its subscriber total on Wednesday, it is expected that about 95 million, more than 60%, will be outside the U.S., and analysts predict that the 200 million mark will include more than 130 million foreign subscribers.

/zigman2/quotes/202353025/composite NFLX 291.44, -5.49, -1.85%

Domestic subscriber growth has slowed down, and faces a much tougher challenge in the months to come amid growing competition. Content producers planning their own streaming services are following The Walt Disney Co.’s /zigman2/quotes/203410047/composite DIS -3.24%  path and removing their content from Netflix to place on their own services.

For more: No more ‘Friends,’ but plenty of enemies on the way for Netflix

Netflix’s views on competition are changing, though. Expect Chief Executive Reed Hastings to discuss those views more in a post-earnings video interview that MarketWatch has called the worst show Netflix produces.

Also reporting

• Netflix officially kicks off tech’s earnings season, and will be joined by a tech company from a very different era, International Business Machines Inc. /zigman2/quotes/203856914/composite IBM -3.54%  IBM will report earnings after successfully completing the acquisition of Red Hat Inc. The combination of Big Blue and Red Hat is an effort to compete for hybrid-cloud customers, who want to leverage the public cloud and on-premises compute.

See also: What is IBM’s plan for Red Hat?

• Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -2.37%  components expected to report Wednesday: IBM

• S&P 500 index /zigman2/quotes/210599714/realtime SPX -2.59%  components expected to report: 13, including Bank of America Corp. /zigman2/quotes/200894270/composite BAC -2.65%  and eBay Inc. /zigman2/quotes/204653455/composite EBAY -3.25%  .

Full earnings calendarLatest results

/zigman2/quotes/202353025/composite
US : U.S.: Nasdaq
$ 291.44
-5.49 -1.85%
Volume: 6.33M
Aug. 23, 2019 4:00p
P/E Ratio
114.29
Dividend Yield
N/A
Market Cap
$127.60 billion
Rev. per Employee
$2.22M
loading...
/zigman2/quotes/203410047/composite
US : U.S.: NYSE
$ 131.67
-4.41 -3.24%
Volume: 10.20M
Aug. 23, 2019 6:30p
P/E Ratio
16.60
Dividend Yield
1.34%
Market Cap
$237.19 billion
Rev. per Employee
$295,532
loading...
/zigman2/quotes/203856914/composite
US : U.S.: NYSE
$ 129.57
-4.75 -3.54%
Volume: 4.82M
Aug. 23, 2019 6:30p
P/E Ratio
13.40
Dividend Yield
5.00%
Market Cap
$114.78 billion
Rev. per Employee
$208,845
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
25,628.90
-623.34 -2.37%
Volume: 364.26M
Aug. 23, 2019 5:10p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
2,847.11
-75.84 -2.59%
Volume: 2.35B
Aug. 23, 2019 5:10p
loading...
/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 26.47
-0.72 -2.65%
Volume: 81.90M
Aug. 23, 2019 6:30p
P/E Ratio
10.14
Dividend Yield
2.72%
Market Cap
$246.39 billion
Rev. per Employee
$543,289
loading...
/zigman2/quotes/204653455/composite
US : U.S.: Nasdaq
$ 38.70
-1.30 -3.25%
Volume: 7.53M
Aug. 23, 2019 4:15p
P/E Ratio
15.12
Dividend Yield
1.45%
Market Cap
$32.46 billion
Rev. per Employee
$768,143
loading...

Jeremy Owens is MarketWatch’s technology editor and San Francisco bureau chief. You can follow him on Twitter @jowens510.

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.