Shares in video-streaming service Netflix rose last night, after the company announced its latest financial results. This, despite actually missing one of its key targets for the third quarter of 2019.
“In Q3, we grew to $5.2 billion in revenue, up 31% over the prior year, and operating income doubled to $1.0 billion. Paid net adds totaled 6.8m compared to our 7.0m forecast and prior year Q3 of 6.1m,” began Netflix’s letter to investors. “As we’ve improved the variety, diversity and quality of our content slate, member engagement has grown, revenue has increased, and we’re able to further fund our content investment.”
Netflix now has 158.3 million global streaming paid memberships, and expects that to grow to 165.9 million by the end of 2019. However, the company is also acknowledging that the launch of rival services like Apple TV+, Disney+ and HBO Max could make its near future a little bumpy. “The launch of these new services will be noisy. There may be some modest headwind to our near-term growth, and we have tried to factor that into our guidance,” admitted Netflix, while setting out its stall in defence. “While the new competitors have some great titles (especially catalog titles), none have the variety, diversity and quality of new original programming that we are producing around the world.” Game on.