Netflix earnings took a huge dip with the results showing on Wednesday. Only about 2.7 million subscribers were added in the quarter which was far low than their estimates. Stocks dropped by 10%. The leaders were in a frenzy as they were trying to understand the sudden dip in growth and revenue took a hit.
The international audience, however, did show a spike and this was pointed out by the executives. Reed Hastings, the CEO still believes that Netflix can grow a lot in untapped quarters like Asia and Australia.
700 million households in China was cited by Reed who believes that steady returns will always come from there. The question, however, is whether they had enough content, relatable content to be shown in those circles due to the language being different.
The executives are also talking about a major unsaturated market that is India and is trying to bring drastic changes and more shows. Talks about new shows are also going on which is set to be released in India which will also be shown in European circles.
International Focus: Paying off at last?
India has been pegged as the country to look forward to given the population which is rich in culture. Sarandos said that they will be looking to get major dividends from there. This international focus is paying off, according to Sarandos. Major important shows like How to Sell Drugs Online (Germany), The Rain (Denmark), and Quicksand (Sweden) — have shown the huge demand in regions beyond the States. They have grossed viewing in excess of 15 million and is a point of note as this can get the country back on track.
The company is however in deep crisis in the United States. Less content and price hike had further added to the woes. Netflix currently has 60 million subscribers and they are now aiming for 90 million as Reed has pointed out. New content and some new changes will soon be seen at Netflix in the coming days.