The streaming giant told investors on Tuesday that while competition is growing and rivals are combining to create more formidable entertainment platforms, there is no need to grow to compete.
“We do not view any assets as ‘must-haves’, and we have not yet found any large assets that are convincing enough to trade,” Netflix said in its second quarter to shareholders.
The company said that the potential in streaming drives the agreement, but that it does not believe media consolidation in recent years has affected growth.
“We mostly compete with ourselves to improve our service as fast as we can. If we do, we are confident that we can maintain our strong position and continue to grow nicely as we have been for the past two plus decades. In Netflix.
The Netflix statement came when the company said it added 1
Netflix said the pandemic had created what it called “lumpiness” in membership growth, referring to higher growth last year and lower growth this year. The company said it has 209.2 million subscribers worldwide. The shares were flat after trading.
The global leader in streaming’s approach to acquisitions is the opposite of the rest of the entertainment industry, which is in a hectic phase of agreement in hopes of gathering content giants who could be formidable rivals to Netflix.
In May, AT&T Inc.
and Discovery Inc.
agreed to combine the media business into a new independent company with assets that include HBO Max, CNN, Discovery + and the film and TV studios Warner Bros. Last month, Amazon.com Inc.
entered into a $ 6.5 billion deal to buy MGM in hopes of using the famous film and television studio’s library and intellectual property rights to strengthen its Prime Video streaming service.
The agreement may not be complete. Comcast Corp.
, parents of NBCUniversal and ViacomCBS Inc.
has discussed creating a streaming partnership for international markets, according to people familiar with the matter.
While Netflix manages deals, it seems to be expanding into new businesses, especially games. Last week, the company hired Facebook CEO Mike Verdu as vice president of game development. The company said it would focus on mobile games and would likely rely on Netflix shows and movies for content. Games will be included free of charge for Netflix members.
“We think the time has come to learn more about how our members value gaming,” the company said in the shareholder letter.
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Netflix chairman and CEO Reed Hastings said in the company’s investor video on Tuesday that games and other affiliates that the company is exploring, such as retail, are not meant to be new profit centers or to take away content operations.
“We are a product company with a number of support elements,” said Hastings.
Netflix’s addition of 1.5 million subscribers for the three-month period ending June 30 surpassed the previous forecast of another million members. It added 10 million in the second quarter a year earlier, when much of the world was in lockdown mode.
Total revenue in Los Gatos California-based companies increased to $ 7.34 billion, compared to $ 6.15 billion the year before. According to FactSet, Wall Street had expected $ 7.32 billion.
Netflix’s profit increased to $ 1.35 billion, or $ 2.97 per share. A year earlier, earnings were $ 720 million, or $ 1.59 per share. Earnings lost estimates for GAAP earnings of $ 3.18 per share.
The Asia-Pacific region was the company’s strongest in terms of new members, responsible for almost 70% of the 1.5 million subscribers. In the US and Canada, the streaming giant lost 400,000 subscribers – the first time it has done so in these markets since the second quarter of 2019.
The engagement among Netflix subscribers was also down in the quarter compared to the same period a year ago. However, this calculation increased by 17% compared to the second quarter of 2019.
Netflix expects a stronger third quarter as delays in media production become easier and more fresh content is available. The company said it predicts paid net additions of 3.5 million, compared to 2.2 million in the third quarter of 2020.
The pandemic continued to hamper Netflix’s selection of original content during the quarter, but the company said it expects to have strong slate for the rest of the year.
—Allison Prang contributed to this article.
Write to Joe Flint at firstname.lastname@example.org
Corrections and reinforcements
In May, AT&T Inc. and Discovery Inc. agreed to combine the media business into a new independent company. An earlier version of this article incorrectly identified Discovery Inc. as Discovery Communications Inc. (corrected July 20, 2021.)
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