Will Netflix continue to beat forecasts?

Netflix continues to expand into different areas of media and in doing so increases its enemies. 

Netflix app on a smartphone
Source: Bloomberg

On Wednesday 15 October Netflix will post its third-quarter figures. Markets are expecting the subscription media service to post an improved adjusted earnings per share figure of $1.169, up from last quarters $1.15. Sales are also set to increase with the last quarter's $1.34 billion jumping to $1.409 billion. It is worth remembering that the last time Netflix failed to beat market expectations for its quarterly figures was back in the first quarter of 2010.

Netflix continues to grow and diversify away from its original format. The days of DVD rentals being delivered in the post are steadily reducing, and the subscription to online content is now the staple of the company’s business. It is expected that by the time figures are reported next Wednesday, Netflix will have almost 55 million subscribers worldwide.

So where next for the company? At the moment it has five full-length feature films in the pipeline. Considering how successful some of the company’s original TV series have been, such as House Of Cards and Orange Is The New Black, it is no surprise that film companies are nervously watching developments.

The way people watch content continues to change, and the lines between watching something on TV, computer or smartphone have become increasingly blurred as the devices become less distinct. There will always be some who are resistant to change, but sooner or later improvements are absorbed into the standard way of thinking. Netflix continues to test that boundary.

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