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Netflix has increased the money it spends on original content such as "Stranger Things".
Photo:
Jackson Davis / Associated Press
Netflix
does not always please the crowd, but the video streaming company deserves credit for creating a sense of catharsis.
The publication, in this case, took place in the form of the company's results for the third quarter Tuesday afternoon. The previous report, in July, frightened investors whose subscriber numbers were lower than the company's forecasts.
This time it was the opposite: Netflix added nearly 7 million new net subscribers in the quarter, 40% more than expected. He also planned to add a record number of 9.4 million new subscribers during the fourth quarter. Analysts expected about 7.6 million new net additions in the fourth quarter, according to FactSet.
Netflix, at least in theory, needs more than just a interested public. In fact, the company's cash consumption rate jumped to $ 859 million in the third quarter, compared with $ 465 million for the same period last year, as it continued to spend money. to the production of new content that will keep subscribers in flux. its full-year consumption rate is in the lower end of the $ 3 to $ 4 billion range it had previously projected. He also said next year's rate would be "pretty much consistent". For a company that has steadily increased its spending over the last five years, this last part is a bit parsimonious.
Not that investors care about it. The rapid growth in subscribers has already driven Netflix shares up 80% this year, even representing a 14% sell-off following the company's July report. The stock jumped 12% after the hours following Tuesday's results. Neither subscribers nor investors can tear themselves away from Netflix, it seems.
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