back to article Netflix profits plunge, but streamer still plans global domination

Online gogglebox Netflix posted a 22 per cent increase in sales, to $1.64bn (£1bn), for its second quarter results, while profits plummeted by 63 per cent to $26m (£17m). The falling profits reflect the company's global domination plans and investment in self-commissioned drama. The streamer now has 65 million members, 23 …

  1. Mikel

    Netflix charges too little

    We use it a lot. The new original programming is nice. For more of that and some more new content we would gladly pay twice the current rate.

    1. Anonymous Coward
      Anonymous Coward

      Re: Netflix charges too little

      I would second that.

      User from the start and pay $8CAD per month. At that price, I don't even notice it go out of my bank account.

      Double it and it would still be great value for money.

      1. Simon Harris
        Pint

        Re: Netflix charges too little

        Equivalent to about 1 1/2 of these a month. ------------------------------------------>

      2. Anonymous Coward
        Anonymous Coward

        Re: Netflix charges too little

        The major selling point for Netflix is their large back catalogue. New material once you've worked through that... not so much. There's also a massive discrepancy between what's available in different regions, which can colour your view of the value for money.

        1. Derpity

          Re: Netflix charges too little

          Indeed. The initial value of just a streaming account on Neflix is great. But once you get through the catalog of decent material and all thats left are lower than B movie titles the value is much less. I am in such a position now. I probably spend more time trying to find something worthwhile to watch than I do actually watching said program.

          1. Florida1920

            Re: Netflix charges too little

            Agree. And even with VPN access to overseas streams (I'm in the U.S.), the content gets thin eventually. Content, people. Content. I guess it doesn't help that 20th-century-minded TV networks and film studios keep much desirable content off Netflix streaming.

            1. Dan Paul

              Re: Netflix charges too little

              Agreed Florida1920, unfortunately, the movie studios are doing the exact same thing as the music companies have done which has failed miserably and caused no end of issues.

              What with release to Blue-Ray or DVD only months after many movies leave the theater (and some way before), the studios should release their product to streaming and broadcast companies at the same time and completely release their back catalog to everyone who can put out there to be monetized. That would make both users and investors pretty happy.

              And that should happen at the same time EVERYWHERE IN THE WORLD TO ALL MEDIA SERVICES!

              Do you hear me Disney, NBC, Fox, etc?

    2. fishman

      Re: Netflix charges too little

      I'd be willing to pay twice Netflix's fee if it gave me access to all of the TV/movie/etc out there.

      Netflix has some, Amazon Prime has some, HULU plus has some. I don't want to have to subscribe to multiple services not only due to cost but also I don't want to have to search through multiple catalogues to find what I'm looking for.

      1. Nate Amsden

        Re: Netflix charges too little

        twice, I'd be willing to pay 10 times what they charge to get everything. I cancelled when they raised prices the first time after looking at my usage and realized I really hadn't streamed more than 2-3 hours in the previous year, and I went through DVDs about once every 3 months.

        I keep going back to this Qwest commercial

        https://www.youtube.com/watch?v=UZ9qcp6Lcno

        that is what I want, I'm happy to pay $100-150 maybe even $200/mo for that.

      2. Tom 13

        Re: gave me access to all of the TV/movie/etc out there.

        While I concur, I suspect this isn't Netflix's fault. I expect the vendors are the culprits on that one.

    3. joed

      Re: Netflix charges too little

      just wait some time and once they have little competition to fear they'll make it happen. the same was with cable.

    4. Tom 13

      Re: Netflix charges too little

      I'm not interested in their original programming, so the price boost isn't worth it to me. Making the OP another tier at $8 would work for me.

  2. Sirius Lee

    Pointless article

    Profits are taxable so unless a company pays a dividend (Netflix does not) getting as close to zero is every CFO's goal. The fact that profits 'plunged' to $23m is irrelevant and a good thing from a shareholder's point of view (my guess is that you don't hold Netflix stock).

    Much, much more relevant is the increase in shareholder funds from $7 to $9.2 *billion* in one quarter. That's an increase of $2.2 *billion* in one quarter. Where is your commentary on this development? $1.5 *billion* is from borrowings and $700 million is from content purchases - you know, the stuff they've bought and will sell to make more money next quarter.

    But don't worry, you focus on the irrelevant 1% of revenues and completely ignore the 100% of quarterly revenue Netflix has borrowed.

  3. Neil B

    Only a matter of time...

    ...before their rates go up, but right now, Netflix is crazy good value for money, plus their original programming is (for the most part) knocking it out of the park.

    1. Valerion

      Re: Only a matter of time...

      They've put their prices up twice since I joined. But only for new customers - as an existing customer I still pay the old price. That's a refreshingly nice model and more reason to love them.

  4. DToma

    Netflix streaming

    I've subscribed to Netflix for a number of years. I get one dvd and unlimited streaming. I used to be quite happy with it. However, the recent change in the streaming side of Netflix has dampened my enthusiasm for the product. I'm referring to the white text on the black background. While I do not have any trouble with viewing video, I am having extreme difficulties with reading white text on black background. I understand that's how it is with the Netflix Original series; but, now it is for all streaming series. I have given up watching any streaming series since this radical change. My son still watches some streaming shows; so, I will keep paying for it.

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