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Netflix adds 8.8 million new subscribers but its stock drops

Millions more have signed up to Netflix in recent months with the streaming giant’s hit Bird Box, starring Sandra Bullock, attracting 80 million subscribers in just four weeks. 

The number of Netflix subscribers currently stands at 139 million globally, with 8.8 million added in the last quarter alone. Out of the new subscribers, 1.53 million came from the U.S.   

It’s been an expensive year for Netflix as it splurged on new content like Bird Box as it faced mounting competition from Disney, Hulu, HBO and Amazon.  

The streaming giant’s hit Bird Box, starring Sandra Bullock, (pictured above) has attracted 80 million subscribers in just four weeks

The number of Netflix subscribers currently stands at 139 million globally, with 8.8 million added in the last quarter alone

The number of Netflix subscribers currently stands at 139 million globally, with 8.8 million added in the last quarter alone

New programs have drawn in big audiences to rave reviews, like Sex Education, a critically acclaimed comedy looking at how high schoolers deal with sex. 

It’s Bird Box , however, that has broken records. 

In December, Netflix said that more than 45 million accounts watched the apocalyptic film in its first seven days, marking a record-breaking debut. 

Over a four week period, the company added that the film had been viewed by 80 million subscribers.

Bird Box focuses on protagonist Sandra Bullock who embarks with her two children on a desperate bid to reach safety ‘five years after an ominous unseen presence drives most of society to suicide.’    

New programs have drawn in big audiences to rave reviews. Horror series, The Haunting of Hill House, has proved popular

New programs have drawn in big audiences to rave reviews. Horror series, The Haunting of Hill House, has proved popular

On Thursday, Netflix announced its fourth-quarter earnings, standing at $4.19 billion, falling short of a $4.21 billion estimate for the quarter, as reported by Yahoo Finance.         

The financial announcement comes days after it was announced that Netflix’s subscription fees were to rise. 

Netflix’s cheapest basic plan will now cost $9 a month, up $1 from $8. The HD standard plan is $13, up from $11. Its most expensive plan rose to $16 from $14 per month. 

Netflix announced a hike in its subscription fees. The HD standard plan is now $13, up from $11

Netflix announced a hike in its subscription fees. The HD standard plan is now $13, up from $11

It’s been a mixed run of fortune for the California-based company. It’s stock dropped 2.8% immediately after its earnings were announced showing investor concerns over spending and debt.  

The company took on new debt last year, reporting free cash flow burn of negative $1.3 billion for the quarter, bringing total outflow to $3 billion for the year. It is thought the cash burn will be similar in 2019 before improving. 

It was reported at the close of the third quarter that Netflix plans to spend $8.4 billion on its programming over the next 12 months. 

‘The fact that investors reacted negatively to what amounted to a strong performance indicates the extent to which Netflix has set a high bar,’ Paul Verna, eMarketer media analyst, wrote in an email, as reported by Yahoo Finance. 

Netflix has significantly increased spending on new content, like Roma, a family drama, set in 1970s Mexico and now tipped for Oscar success

Netflix has significantly increased spending on new content, like Roma, a family drama, set in 1970s Mexico and now tipped for Oscar success

Other Netflix successes in 2018 include: Alfonso Cuarón’s Roma, a family drama, set in 1970s Mexico that won the Golden Lion at the Venice Film Festival and is now tipped for Oscar success.

While horror series, The Haunting of Hill House, is another hit that focuses on a family confronting haunting memories of their old home and the terrifying events that drove them from it.  

The company's fourth-quarter earnings announced Thursday stand at $4.19 billion but its stock dropped after the announcement (characters from Sex Education, pictured above)

The company’s fourth-quarter earnings announced Thursday stand at $4.19 billion but its stock dropped after the announcement (characters from Sex Education, pictured above)

 ‘Our multi-year plan is to keep significantly growing our content while increasing our revenue faster to expand our operating margins,’ the company said in a letter to investors.  

Netflix has also been upping its investment in international markets. There is growth in other countries like India and Mexico. Netflix announced in September plans to double investment in France by producing 14 local shows. 

  

Read more at DailyMail.co.uk


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