Netflix isn’t showing any sign of slowing down with the release of new quarterly numbers that handily beat Wall Street expectations.
And though the streaming service remains dominant in Internet entertainment, it’s also somewhat humble, at least in this release.
“We compete for entertainment time with linear TV, YouTube, video gaming, web browsing, social media, DVD and PPV, and more. In that competition for screen hours, we lose most of the time, but we win enough to keep growing,” the company notes in a new letter to shareholders.
Here’s what’s new with Netflix
If you’re a Netflix customer, here’s what you need to know.
Netflix will continue investing in more original content
Netflix basically has three main buckets of content: new licensed non-first-window content (like Shameless), licensed original first-window content (Orange is the New Black would be an example) and self-owned original first-window content from the Netflix studio (think Stranger Things, among many others).
It’s that last category that Netflix is really putting its money on. And to do that, it’s building an in-house film and TV studio from the bottom up.
“A growing number of employees are becoming involved in developing content as we migrate to self-produce more of our content vs. only licensing original and non-original content,” the company notes.
“To support our efforts, we’ll need more production capacity; we recently announced the selection of Albuquerque, New Mexico as the site of a new U.S. production hub.”
That Albuquerque-based facility is expected to house $1 billion in production over the next decade and create up to 1,000 production jobs each year, according to Netflix.
Romantic comedies are the name of the game for Netflix
This summer, Netflix rolled out a slate of romantic comedies as part of its Summer of Love content lineup. Among them were hits like Set It Up and The Kissing Booth.
In fact, To All the Boys I’ve Loved Before was “one of our most viewed original films ever with strong repeat viewing.”
It turns out that flame still burns because the Internet entertainment giant is getting ready to roll out even more rom-coms!
“More than 80 million accounts have watched one or more of the Summer of Love films globally and we are already in production for the next set of original rom-coms for our members,” the streamer says.
More dual theatrical/streaming releases are on tap
Netflix has been at the forefront of pioneering a new business model in the theatrical exhibition industry lately.
On October 10, Netflix released 22 July from director Paul Greengrass on 100 screens around the world on the same day the historical drama debuted on Netflix.
This December, they’ll do it all over again for ROMA, from Oscar-winning director Alfonso Cuarón. Meanwhile, there’s already serious talk of a Best Picture Oscar nomination — which would be a first for Netflix — for Cuarón’s intensely personal film.
“We believe in our member-centric simultaneous release model for our original films and welcome additional theatre chains that are open to carrying our films to provide the shared-viewing, big-screen experience to their customers who enjoy that option,” Netflix says.
Netflix is all about the Instagram love for its stars
“Netflix has been a launching pad for a new generation of global stars like Millie Bobby Brown, Jacob Elordi, Noah Centineo and Gaten Matarazzo,” the company says.
Need a good indicator that Netflix is making a huge impact on the world?
Just look at the Instagram followers of its stars before and after the launch of their shows:
“When our service helps our talent develop huge fan bases (from small followings to over 10 million Instagram followers), we can attract the best talent in the world. This explosive growth in popularity is a good indicator that our shows and stars are breaking out around the planet.”
Could the free one-month trial be going away?
Buried in a stray sentence in the company’s latest missive is an admission that free trial memberships are becoming less and less important to Netflix.
In fact, the streamer says its getting ready to do away with measuring free trial memberships as an important business metric.
“We are learning that no free trial may result in greater revenue in some markets, so free trial count at the end of a quarter will likely be a less insightful predictor of future growth than in the past,” Netflix notes.
“As a result, starting with our earnings report in January 2019, we’ll only guide to paid memberships; a year after that, in 2020, we’ll cease reporting on end-of-quarter free trial count.”
Could the free trial — once a prime way to get customers into the Netflix ecosystem — be headed the way of the dodo?
Only time will tell. Stay tuned!
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