Netflix 'not sure of God's intention for TV'

Nicola Riches
By Nicola Riches | 20 January 2016
 
Grace and Frankie - a Netflix original

Netflix grew its audience across the world by 17 million members last year, bringing its total on 1 January to 75 million.

This quarter it expects to improve that figure by six million, against a Q4 backdrop where it remained profitable, delivering operating income of US$60 million and net income of US$43m.

The company posted year-end revenues of US$1.67 billion, just short of analyst expectations which came in at US$1.83bn.

However, the company's international expansion loss of $(US)109 million increased sequentially due to new launches in Japan, Spain, Portugal and Italy. The company says it expects international losses of about $(US)114 million in quarter one.

By the end of 2015, 2.73 million Australians had subscribed to Netflix, new quarterly data from Roy Morgan Research shows. However, between October and December the number of new take-ups had started to slow.

In a statement the company says, "The growth of Netflix has created some anxiety among TV networks, with calls to be fearful. Or, at the other extreme, an NBC executive recently said Internet TV is overblown and that linear TV is 'TV like God intended'. Our investors are not as sure of God’s intentions for TV, and instead think that Internet TV is
a fundamentally better entertainment experience that will gain share for many years."

In early January, SVOD provider CES announced the availability of Netflix everywhere in the world except China, plus it revealed 11 original shows that will be broadcast through this year. They include: Love (Feb 11)
Fuller House (Feb 26), House of Cards (March 4), Flaked (March 11), The Ranch (April 1), Unbreakable Kimmy Schmidt (April 15), Marseilles (May 5), Grace and Frankie (May 6), Orange Is the New Black (June 17), Stranger Things (July 15), The Get Down (Aug 12).

Email Nicola at nicolariches@yaffa.com.au.

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