After speaking on numerous facets of the business, Neumann explained that he expects operating margins to be in the range of 18% to 20%; down from a peak of 21%. Current consensus estimates are slightly below 20%.

The CFO added that while new revenue initiatives such as the ad-supported tier have been introduced, such offerings could take time to mature. “We’re still in the crawl of the crawl-walk-run stage, so it is not easy to build an ad business from scratch. We got a lot of work to do,” Neumann explained.

The post Netflix Stock Falls as CFO Warns of Lower Margins appeared first on theprimarymarket.com.

According to the statement posted on the company’s website, the change will affect “new and rejoining members.”

“If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account,” the company added.

The move is likely part of Netflix’s push to promote its ad-supported plan. At a cost of $6.99 per month, the “Standard with ads” plan is now the most affordable option for new users. The Standard plan, which offers ad-free streaming, costs $15.49 and gives users an option to add an extra member to the plan for $7.99 each.

Elimination of the “Basic” plan comes ahead of Netflix’s quarterly earnings results release. The streaming service gained the trust of investors in recent months thanks to the ad-supported plan and its initiative to crack down on the practice of password sharing. As a result, Netflix shares have recovered after challenging the second part of 2022 and are now up almost 62% year to date.

The post Netflix Removes its Lowest-Priced Ad-Free Plan in the U.S. appeared first on theprimarymarket.com.

Hastings’ decision comes after the company’s fourth-quarter financial results were released on Thursday. While the addition of 7.66 million new subscribers far exceeded forecasts of 4.5 million, adjusted earnings of $0.12 versus missed expectations of $0.58 per share.

The platform’s growth is believed to be driven by the introduction of a new, ad-supported tier as well as the release of a range of high profile content, including Glass Onion, All Quiet on the Western Front, and Wednesday. 

The post Netflix CEO Steps Down Following Q4 Earnings Report appeared first on theprimarymarket.com.

While subscriber numbers declined during the first three quarters of 2022, investors expect them to have risen over Q4. The company’s crackdown on password sharing is also at center stage.

Estimates for Netflix’s fourth-quarter financial results include revenue of $7.85 billion, adjusted earnings per share of $0.58, and an addition of 4.5 million net subscribers. Several analysts polled by Bloomberg expect Netflix to beat revenue expectations following the release of highly popular content such as Glass Onion, Troll, and Wednesday.

Given its release in November, investors are not likely to see the full impact of Netflix’s ad tier. According to data from third-party research firm YipitData, Ad-based gross subscriber additions consist of 15% of total subscriber gross additions.

Wells Fargo’s Steve Cahall expressed the bank’s belief that password sharing will be a major focal point to consider when assessing the streaming platform’s performance going forward. “While much of the sellside and buyside focus of late has been the [advertising video-on-demand] launch, we actually think disclosure will be limited as will the impact on estimates. Instead, we think password sharing is the bigger catalyst near term,” he explained

The post Investors Anticipate Subscriber Gains Ahead of Netflix Q4 Earnings appeared first on theprimarymarket.com.

The ad-supported plan will officially roll out in Canada and Mexico on November 1st before making its way to the United States, UK, and other big markets on November 3rd. The price of the plan for U.S. users will be $6.99 on a monthly basis, which is $3 cheaper than the Basic tier ($9.99), Netflix’s cheapest option without ads.

Netflix also shared more info about the way ads will be presented to the users. According to Netflix COO Greg Peters, ads will be played before and during shows and movies. There will be “four to five minutes of ads per hour,” with each ad running from 15 to 30 seconds.

“We believe that with this launch, we’ll be able to provide a plan and a price for every Netflix fan,” said Peters.

The ad-supported plan will come with a lower price but also several limitations. Certain TV shows and movies won’t be available, with the streamer projecting that five to 10 percent of its library will be locked for the users of this tier. Also, the download for later watching option also won’t be included.

Netflix objected to the introduction of ads to its platform for years, but disappointing earnings results, loss of subscribers, and increasing competition forced the company to change its stance. Netflix stock is currently going for $231.77 per share, which is 61.20 percent down year to date.

The post Netflix Shares Details and Price of Its Ad-Supported Plan appeared first on theprimarymarket.com.

After speaking on numerous facets of the business, Neumann explained that he expects operating margins to be in the range of 18% to 20%; down from a peak of 21%. Current consensus estimates are slightly below 20%.

The CFO added that while new revenue initiatives such as the ad-supported tier have been introduced, such offerings could take time to mature. “We’re still in the crawl of the crawl-walk-run stage, so it is not easy to build an ad business from scratch. We got a lot of work to do,” Neumann explained.

The post Netflix Stock Falls as CFO Warns of Lower Margins appeared first on theprimarymarket.com.

According to the statement posted on the company’s website, the change will affect “new and rejoining members.”

“If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account,” the company added.

The move is likely part of Netflix’s push to promote its ad-supported plan. At a cost of $6.99 per month, the “Standard with ads” plan is now the most affordable option for new users. The Standard plan, which offers ad-free streaming, costs $15.49 and gives users an option to add an extra member to the plan for $7.99 each.

Elimination of the “Basic” plan comes ahead of Netflix’s quarterly earnings results release. The streaming service gained the trust of investors in recent months thanks to the ad-supported plan and its initiative to crack down on the practice of password sharing. As a result, Netflix shares have recovered after challenging the second part of 2022 and are now up almost 62% year to date.

The post Netflix Removes its Lowest-Priced Ad-Free Plan in the U.S. appeared first on theprimarymarket.com.

Hastings’ decision comes after the company’s fourth-quarter financial results were released on Thursday. While the addition of 7.66 million new subscribers far exceeded forecasts of 4.5 million, adjusted earnings of $0.12 versus missed expectations of $0.58 per share.

The platform’s growth is believed to be driven by the introduction of a new, ad-supported tier as well as the release of a range of high profile content, including Glass Onion, All Quiet on the Western Front, and Wednesday. 

The post Netflix CEO Steps Down Following Q4 Earnings Report appeared first on theprimarymarket.com.

While subscriber numbers declined during the first three quarters of 2022, investors expect them to have risen over Q4. The company’s crackdown on password sharing is also at center stage.

Estimates for Netflix’s fourth-quarter financial results include revenue of $7.85 billion, adjusted earnings per share of $0.58, and an addition of 4.5 million net subscribers. Several analysts polled by Bloomberg expect Netflix to beat revenue expectations following the release of highly popular content such as Glass Onion, Troll, and Wednesday.

Given its release in November, investors are not likely to see the full impact of Netflix’s ad tier. According to data from third-party research firm YipitData, Ad-based gross subscriber additions consist of 15% of total subscriber gross additions.

Wells Fargo’s Steve Cahall expressed the bank’s belief that password sharing will be a major focal point to consider when assessing the streaming platform’s performance going forward. “While much of the sellside and buyside focus of late has been the [advertising video-on-demand] launch, we actually think disclosure will be limited as will the impact on estimates. Instead, we think password sharing is the bigger catalyst near term,” he explained

The post Investors Anticipate Subscriber Gains Ahead of Netflix Q4 Earnings appeared first on theprimarymarket.com.

The ad-supported plan will officially roll out in Canada and Mexico on November 1st before making its way to the United States, UK, and other big markets on November 3rd. The price of the plan for U.S. users will be $6.99 on a monthly basis, which is $3 cheaper than the Basic tier ($9.99), Netflix’s cheapest option without ads.

Netflix also shared more info about the way ads will be presented to the users. According to Netflix COO Greg Peters, ads will be played before and during shows and movies. There will be “four to five minutes of ads per hour,” with each ad running from 15 to 30 seconds.

“We believe that with this launch, we’ll be able to provide a plan and a price for every Netflix fan,” said Peters.

The ad-supported plan will come with a lower price but also several limitations. Certain TV shows and movies won’t be available, with the streamer projecting that five to 10 percent of its library will be locked for the users of this tier. Also, the download for later watching option also won’t be included.

Netflix objected to the introduction of ads to its platform for years, but disappointing earnings results, loss of subscribers, and increasing competition forced the company to change its stance. Netflix stock is currently going for $231.77 per share, which is 61.20 percent down year to date.

The post Netflix Shares Details and Price of Its Ad-Supported Plan appeared first on theprimarymarket.com.