Today's video focuses on four things long-term investors should know about Netflix (NFLX 1.35%) after the company reported its earnings on Oct. 19. Here are some highlights from the video.
- Netflix added 4.4 million paid subscribers this quarter, much higher than the 3.5 million the company projected in its previous earnings calls. Netflix forecasts an addition of 8.5 million subscribers for its final quarter, and to keep things in perspective, Netflix added roughly 9.9 million between Q1, Q2, and Q3.
- Netflix will now report total hours viewed instead of the total number of accounts that have viewed a specific show. The new metric Netflix is using has been a staple in the TV industry, and it can provide better information to investors. Netflix also announced that it would share these metrics more often, and not only during an earnings report.
- Recent acquisitions can help Netflix provide more substantial content to its subscribers. During Q3, Netflix announced an agreement to acquire The Roald Dahl Story Company, which contains numerous popular stories. Netflix also acquired a gaming studio to help build its game development capabilities.
Click the video below for my full thoughts and analysis.
*Stock prices used were the closing prices of Oct. 19, 2021. The video was published on Oct. 20, 2021.