Netflix declares itself ready to march on China as revenue rockets
Streaming service Netflix has thrilled investors after declaring itself ready to make a move on China, the world’s largest market, after revenues beat analysts’ expectations with a 23 per cent rise.
In its latest set of financial results Netflix reported revenue of £1.82bn in the fourth quarter of 2015, a 23 per cent increase on the year before, although net profit actually fell to $43m from $83m the year before owing to the effects of a one off tax benefit that year.
Netflix now operates in 190 countries around the world with China being the most obvious glaring omission in its move toward global conquest as its home US market becomes saturated.
Domestic subscriptions grew by just 1.56m in 2015, below Netflix’s stated goal of a 1.65m uplift.
In a statement a newly confident Netflix said: “In the last remaining major market, China, we have work and uncertainty ahead. We are building relationships, understanding the market, and seeking the conditions we require to provide our service to entertainment lovers there. Our expectations are modest and long‐term. We may be able to get started this year and thus deliver on “whole world by end of 2016” or it may take longer.”
Netflix now counts 5.59m active subscribers with its total membership sitting at 74.76m.
The earnings report wans’t all dry however with many eyebrows raised by a sly quip at the expense of NBC’s president of research and development Alan Wurtzel, by defending the broadcast model of TV thusly at The Television Critics Association press tour.
Netflix wrote: “(A)n 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.”