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Attracting Consumers netflixNew ad supported service of? Shareholders are expecting highlights of the new plan during its fourth-quarter earnings report, which is scheduled after Thursday’s bell.
Wall Street has been watching Netflix closely in recent quarters as it broke with its tradition of offering low-cost tiers laced with ads and teased new strategies to crack down on password sharing in an effort to boost revenue. Is.
Here are Wall Street’s expectations:
- EPS: 45 cents per share, according to Refinitiv.
- Revenue: $7.85 billion, according to the Refinitiv survey.
- Expected Global Paid Net Subscriber: An association of 4.57 million customers, according to StreetAccount estimates.
Last quarter, the streamer said it was “very optimistic” about its new advertising business. While it doesn’t expect the new tier to contribute materially to its fourth-quarter results, it expects to grow membership gradually over time.
Heading into Thursday’s report, analysts expect the company to announce an additional 4.57 million paid subscribers, on par with Netflix’s own projection of 4.5 million. That number would be stronger than the 2.4 million services added last quarter and much better than the decline seen in the first half of the year.
going forward, Netflix will no longer provide subscriber guidance, although it will still report those numbers in future earnings reports. The reasoning is that the company is increasing its focus on revenue rather than membership growth as its primary top line metric.