More people may be using Netflix, or so it appears.
The movie-streaming website may say that they are still kings, but the figures say otherwise. Revenues are pouring in from outside the US, but it still recorded lower overall subscribers logging in than expected. To make it simple, this means their markets aren't doing so well.
There's a light at the end of the tunnel, though, and that's Netflix's international markets, which they aim to conquer as part of their goal of becoming a 'global powerhouse.' As CNET points out, more of the company's revenue comes from outside of the US. Evidence of this can be seen in the programs that Netflix streams to its subscribers; for instance, their biggest market, India, has been getting more of what they love-particularly "Sacred Games," a series based on a novel.
It should help their case, as Bloomberg Business Week reports that all is not as rosy as it seems.
Netflix has two numbers to account for. First, $28 billion-the amount that they need to pay. This is for a variety of services, mainly for programming needed for their streaming service to work seamlessly, not to mention the money that they have borrowed for whatever reason.
Second, $279 million-the amount that Netflix's cash flow amounts to. This is also buoyed by people subscribing to watch streaming movies as well as other business operations.
A chart showing Netflix hemorrhaging money can be seen as bad news; however, one has to take account that the streaming service is actually doing so many things at once, their cash flow has yet to reflect that. They can be faulted, however, for trying to take so many things in at once that their money has yet to recover.
Netflix is expected to profit somewhere in the neighborhood of $3.988 billion; Wall Street analysts say otherwise, expecting Netflix to bounce back somewhere around $4.13 billion. That amount could jump-start their resurgence to actually pay off what might be a big deficit to some.
They better do it as soon as they can, or they stand to lose some more even before they begin to gain.
