Netflix Forecast Promising, Recovers From 2011 Hits
A new Wall Street report suggests Netflix will lower its forecast of adding 7 million U.S. streaming-service customers in 2012 by as much as 10%. But that should not come as a surprise
to investors who have already harbored doubts, according to author Oppenheimer, which projects a 6.6 million increase. Still, the report was positive on Netflix as it prepares to announce its
second-quarter results next week.
Oppenheimer projects Netflix will report 24 million streaming customers in the U.S., which would be a 2.6% increase over last quarter. That would be above the
23.6 million Netflix had projected on the low end for the April-June quarter.
Oppenheimer’s bullishness on Netflix included projections that the service accounts for nearly 20%
of TV viewing in subscriber homes. Comparing the $8 Netflix charge with about $75 for a cable subscription, Oppenheimer wrote that “this suggests a very strong value proposition for Netflix
customers.”
Also, research firm ForeSee shows the Netflix brand may be recovering from hits taken last year as it looked to separate its DVD-mail service and rebrand it. The
company scored an 81 on its consumer satisfaction in May, according to Oppenheimer -- up from the 79 nadir in late 2011.
In the second quarter, Oppenheimer projects customers on
average streamed 34 hours of content a month -- up from 32 in the quarter before and 19 in the 2011 second quarter.
In the second quarter, a Netflix subscriber watched an average of
148 TV hours and 34 streaming hours on Netflix, with Netflix accounting for 19% of the combined figure.
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