Netflix Marketing Dollars Soar, Subscribers Rise

With news of its global subscribers still climbing -- followed by soaring stock price gains Tuesday -- Netflix is expected to spend even more in worldwide marketing dollars in the coming periods.

Projections for 2018: Netflix will spend $2.1 billion in marketing/advertising related activities, up 62% from $1.3 billion in 2017, and hitting $2.7 billion in 2019, according to B.Riley FBR.

All this comes as Netflix continues to witnessed sharp financial growth, announced Monday after the markets closed -- 40% higher in revenue for its first-quarter earning period to $3.7 billion, estimated to rise to $16 billion for all of 2018. It was $11.7 billion in 2017.

Net income grew 63% to $290 million in the first three months of this year.

Netflix global subscribers growth saw 1 million more than expected, according to analysts -- rising 7.4 million for the period to total 125 million. This came from 2 million more users in the U.S., now totaling 56.7 million; and 5.4 million additions internationally, totaling 68.3 million.

advertisement

advertisement

Still, Barton Crocket, media analyst at B.Riley FBR, remains cautious: “While very encouraging, we still struggle with high valuation and lofty expectations already embedded in this equity, and so retain our neutral rating ... we don't see how one can escape seeing Netflix's surprisingly durable growth as cautionary for the traditional TV ecosystem.”

Netflix will spend around $8 billion in TV/movie production this year.

Midday trading of Netflix’s stock on Tuesday was up 7% to 329.66.

Next story loading loading..