What are the main metrics that Netflix is expected to post, compared to consensus estimates compiled by Bloomberg:
The Los Gatos, Calif. based company added far fewer new users in the first months of 2021 than last year when pandemic-era stay-in-place orders fueled a surge in sign-ups. A robust slate of content is expected to have fuelled this new user acquisition, especially with the release of Netflix's hit Korean television series Squid Game. The series is expected to cost nearly $900 million to the streaming giant after costing just $21.4 million to produce, according to a Bloomberg report. And a record 132 million people watched the show in its first 23 days, surpassing previous viewership record following the publication of Bridgerton by Dickham. Given the Squid Game that launched at the end of September, it could help provide a sustained boost to Netflix's results for year-end, some analysts said.
We expect the company to guide to further acceleration in 4 Q with hit series 'Squid Game, 'Seinfeld, The Witcher, 'You' and 'Cobra Kai' and star-packed films 'Don't Look Up, 'Red Notice' Hodulik added that he expects the return of well-known series including Stranger Things, Bridgerton, The Crown, and Ozark to help boost activity in the final months of the year and into 2022.
However, at the same period, it gained more than 1 million in Europe, the Middle East and Africa, and 190,000 and 760,000, respectively.
That said, North America still comprises Netflix’s largest user base and the average revenue in this region per subscription was $14.54 during the second quarter.
The company said last quarter that it would be investing in mobile gaming, initially focused on video games. Netflix also announced late last month that it would acquire Night School Studio as its first gaming studio, Studios in London.
Shares of Netflix have increased 18% w/in the year-to-date after Monday close, underperforming against the S&P 500's 19.5% rise over that timeframe.
Emily McCormick is a reporter for Yahoo Finance.