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Netflix CEO Reed Hastings  (Source: siliconangle.com)
According to Thomson Reuters, I/B/E/S, analysts expect third quarter revenue to come to $801.53 million and earnings per share at 94 cents

Netflix has had a pretty hard time this year with all the recent changes it made as well as the negative reactions to said changes. Now, investors are wondering what Netflix will report as far as quarterly earnings go on Monday, but the expectations aren't too high.

Netflix announced in July that it was raising prices and changing the plans available for customers. Instead of a monthly price of $9.99 for both video streaming and DVD by mail, these two plans would be split into their own categories for $7.99 a piece. Obtaining both together would cost $15.98.

Other hiccups came up along the way, such as Netflix's loss of Starz content and its decision to create a DVD spin-off company called Qwikster, which it retracted less than a month after announcing the new DVD entity.

Now, Netflix is paying for all this stumbling around through mid 2011. It already cut its U.S. subscriber predictions from 25 million to 24 million for the quarter, and investors don't expect to hear anything else worthwhile when Netflix's quarterly results are released on Monday.

"Between lower-than-anticipated [subscriber] growth and the reversal of the decision to completely separate the DVD streaming business, these are clearly trying times for Netflix," said Steve Frankel, a Dougherty and Co. analyst. "The near term is clouded by higher than anticipated churn, a situation which is likely to negatively impact the fourth quarter as well."

According to Thomson Reuters, I/B/E/S, analysts expect third quarter revenue to come to $801.53 million and earnings per share at 94 cents. It also expects Netflix to achieve its lowered subscriber growth number. In Q3 2010, Netflix generated $553 million in revenue, but gained 1.9 million subscribers.

Things aren't looking good for Netflix right now in the eyes of investors, and investors expect some clear answers come Monday. However, some analysts say they're looking ahead to the fourth quarter, since it holds the holiday shopping period and is usually a strong time for Netflix. Also, analysts are optimistic because Netflix's expansion internationally is expected to move into Europe next, and Netflix still has a content library "far ahead" of the likes of Blockbuster.

Source: Reuters



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This article is over a month old, voting and posting comments is disabled

Really?
By rburnham on 10/21/2011 9:20:07 AM , Rating: 2
Or you could wait until Monday to post the facts instead of another "no one is sure about anything" article.




RE: Really?
By Dr of crap on 10/21/2011 4:04:26 PM , Rating: 2
+6
I too really hate these "it might" articles.
What and see the reall result.
Don't put your guess spin on it!


It's partly the lack of quality streaming content
By Chaotic42 on 10/22/2011 8:00:30 PM , Rating: 2
Netflix as a service is pretty good, I haven't been unable to watch movies when I wanted to, but their body of content available online is... poor. Even before they lost all of the Starz content, it was still kind of thin. Now it seems like it's mostly anime, kids shows, and crazy foreign movies. As an example, The League is in season 3 on TV, but only season 1 is available. Same for Archer. Last I checked, even The Godfather wasn't available anymore. Those are all popular titles which should have a significant amount of demand.

They need to make nice with the content providers or increase rates while putting up more content at the same time. I would gladly pay $30 per month for access to all of their DVD content on demand.

I'm close to cancelling my subscription. It's a shame, because it's so damned convenient.




By StevoLincolnite on 10/23/2011 12:52:12 PM , Rating: 2
quote:
I'm close to cancelling my subscription. It's a shame, because it's so damned convenient.


And here I am... Sitting in another country where no such service like Netflix exists... And hence... I have to resort to piracy if I ever wish to watch some movies or Television shows. (Much to the disgruntle of media company's. If they can't provide it... Then I'll get it via other means.)

I would at least like the option to give Netflix a run if they gave me such an option...


Only get worried...
By quiksilvr on 10/21/2011 9:21:03 AM , Rating: 2
Once Dish realizes the Blockbuster deal shouldn't be limited to Dish owners and opens the market to everyone.




Grim Future
By Mitch101 on 10/21/2011 9:48:59 AM , Rating: 2
Netflix has been great but alternatives are showing up as standard in most TV's today. HBO Go, Hulu, Vudu, Amazon, Flixter, YouTube, Soon Microsoft, and a ton of independent free stuff. Heck OTA Local channels are 720p/1080i if your close enough. Then there is the specialized networks like MLB, UFC, NHL, (Where is my NFL!!!)

It should be now but in a few years it seems youll buy an HDTV plug it into the internet and subscribe to the streaming networks of your choice you can watch live or pre-recorded service probably in a tiered package.

The only thing preventing this is Cable and Satellite companies fighting to hold onto their monopolies. I personally think Cable companies should be sued out of charging you extra if your not a cable subscriber and just want them for internet services.




RE: Grim Future
By gorehound on 10/21/11, Rating: 0
I Can Confirm...
By Arsynic on 10/21/2011 11:17:07 AM , Rating: 2
...that their earnings are at least less $7.99/month.




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