Earnings week starts with strong numbers from Netflix
This week will be earnings week as a number of the big tech companies report their results – Apple and Facebook report on Wednesday.
Today Netflix reported earnings after the bell and came in with a strong report.
Netflix reported that its streaming business grew by 2.25 million members to 35.7 million in total. Netflix also bragged about its original programming – House of Cards, for instance – but failed to give much real detail.
The company reiterated its opposition to the Comcast-Time Warner Cable merger:
“The Internet faces a long term threat from the largest ISPs driving up profits for themselves and costs for everyone else as detailed in our recent blog post,” CEO Reed Hastings said.
“If the Comcast and Time Warner Cable merger is approved, the combined company’s footprint will pass over 60 percent1 of U.S. broadband households, after the proposed divestiture, with most of those homes having Comcast as the only option for truly high-speed broadband (>10Mbps). As DSL fades in favor of cable Internet, Comcast could control high-speed broadband to the majority of American homes. Comcast is already dominant enough to be able to capture unprecedented fees from transit providers and services such as Netflix. The combined company would possess even more anti- competitive leverage to charge arbitrary interconnection tolls for access to their customers. For this reason, Netflix opposes this merger.”
The company also said that it planned on a price increase that would add $1 to $2 for new members.
As for the numbers, Netflix reported revenue grow of 24 percent in the quarter, and a tripling of operating income. The company did inform investors, however, to expect much less in the next quarter, blaming seasonality.