Netflix says its worth hike is all about buying extra content material

Netflix says its price hike is all about acquiring more content

Netflix has launched its quarterly earnings immediately (PDF), and up to now, the parents on Wall Road aren’t responding positively. In fact, clients have already heard the large information — Epix films and Sesame Road are gone, its first film Beasts of No Nation premieres tomorrow night time and the worth for many of us will go up $1 subsequent yr. So what’s driving a inventory drop (down about eight % after the outcomes got here out)? It did not add as many new subscribers within the US because it had predicted (1.15 million predicted vs. 880,000 precise), and with plans to spend some $5 or $6 billion on content material in 2016, it might want to develop to pay for all of that. In accordance with CEO Reed Hastings the current worth hike is supposed to “enhance its capacity to accumulate and supply top quality content material,” however Disney does not come low cost.

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