Earnings

Content Expected To Be Key To Netflix Q2 Earnings

Content Expected To Be Key To Netflix Earnings

Netflix is once again expected to beat earnings estimates this quarter, despite the rise of streaming competitors and the upcoming loss of popular TV shows “The Office” and “Friends.”

The report is expected to include an increase in revenue and in subscriber growth totals. Despite the decline in new U.S. subscribers, analysts agree that Netflix is appropriately targeting international markets with success, and will continue to focus on enlarging its global consumer base.

In the first quarter, Netflix reported a higher revenue than expected, and assured investors that the company is not worried about new streaming players such as Apple TV and Disney+. In a letter to shareholders, they explained that competition will not be a threat, due to “the differing nature of our content offerings.”

The key is offering the right content, according to experts. The company’s wide variety of TV shows and movies has been a major contributor to its revenue and subscriber growth. Netflix originals set them apart from what other streaming services offer – especially movies such as “Murder Mystery,” which demonstrate their ability to serve as a major movie studio, but also incur heavy production costs and don’t always gather the viewership numbers to validate big spending.

But original content will still have to play a large role in the company’s growth, especially following the recent announcements of the departures of “The Office” and “Friends” from the streaming giant, the news of which caused shares to drop. “Friends” will be moving to HBO Max in 2020, and “The Office” will be joining NBC’s streaming service in 2021.

Netflix will release its earnings report on Wednesday, July 17, after market close.

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