A couple sits in front of a TV with the Netflix logo.
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Netflix second season earnings report No bombshells were included, which is great for the company and its investors.
In recent weeks, Paramount Worldwide have Agree to merge Sky Dance Media. Warner Bros. Discovery yes Consider all options for the future and May lose NBA broadcast rights.
While the media and entertainment landscape is changing around Netflix, the world’s largest streaming company is resting on its laurels.
Netflix said in a statement: “If we execute well – with better stories, easier discoverability and more fans – while also establishing ourselves in new areas such as live streaming, games and advertising, we believe we can still There is more room for growth. Quarterly Letter to Shareholders. “Because when we entertain people with our entertainment, Netflix drives higher engagement, revenue and profits than our competitors. This in turn creates a more beloved and profitable company for our members, creators and shareholders. A more valuable entertainment company on which we can strengthen and grow over time.
Netflix classifies the streaming, pay TV, movie, gaming and brand advertising markets as a $600 billion annual industry, noting that the company accounts for about 6% of that revenue.
The streamer added more than 8 million subscribers this season. It now has more than 277 million customers worldwide, making it by far the largest subscription streaming service in the world. As of Thursday’s close, Netflix’s market capitalization was $277 billion.
Nielsen statistics show that Netflix is the second most watched streaming service in the United States. Only behind YouTube. But instead of worrying YouTube The company reiterated that Netflix is willing to focus on competing in the other 80% of the TV market.
“Going forward, we believe our greatest opportunity is to win a greater share of the 80%+ of television time (primarily linear and streaming) that neither Netflix nor YouTube currently has,” the company said.
And Warner and Disney Announcing the establishment of a new cross-company The bundle launched by Netflix in May will allow consumers to buy a Max with Disney’s suite of streaming services at a discount, but Netflix has specifically said it doesn’t see the need to compete.
“We are not bundling Netflix separately with other streaming services like Disney+ or Max because the breadth and diversity of our content and superior product experience have made Netflix the premier destination for entertainment,” Netflix said. This drives our industry-leading penetration, engagement and retention rates, which limits the benefits of tying Netflix directly with other companies.”
Netflix’s focus remains on building its advertising business and growing streaming subscribers on the strength of its content.
This is not even the most dramatic narrative. It probably won’t make a great Netflix series.
But as an investment, shareholders would be happy to take it.
WATCH: Netflix sees massive subscriber growth in Season 2
