The company is usually projecting This particular will add 9.4 million net subscribers during the fourth quarter.
“We’re getting a little better on the forecasting,” CEO Reed Hastings said after the earnings report. “I think by focusing going forward on paid [net adds] we’ll be able to be a little more accurate along with also also focus on the fundamentals.”
Netflix will also be relying on its TV along with also also film studios to make more of its own content, rather than licensing content. Shows including “Stranger Things,” “Big Mouth,” “The Ranch,” “Bright,” “Godless,” “The Kissing Booth,” “3%,” “Dark,” “Sacred Games” along with also also “Nailed This particular” were created by Netflix studios. This particular also licenses shows which may have appeared on TV or in theaters before like “Shameless” or “Friends,” as well as obtains first-window rights to shows like “Orange is usually the brand-new Black” along with also also “13 Reasons Why.”
“Our own original shows tend to be more valuable than licensing someone else’s shows in later windows,” Chief Content Officer Ted Sarandos told analysts. “So when we invest in an original show, we find, we’re having a better payback in terms of people watching along with also also appreciating Netflix along with also also valuing their subscription. producing sure which’s why we’re leaning in which way.”
Netflix will only give guidance to paid membership subscription ads (not total, which includes people who may be using the free trial) starting with its earnings report in January 2019, along with also also will include graphs like the ones above to show its growth trajectory. This particular will stop including end-of-quarter free trial subscriber numbers in its reports in 2020.
This particular’s also changing how This particular records some expenses to reflect the company’s move towards more of its own content.
“Next quarter, we expect to reclassify certain personnel costs by G&A to Content along with also also Marketing, along with also also by Technology & Development to various other Cost of Revenues,” the company wrote in a note to shareholders.
Analysts by Morgan Stanley, Goldman Sachs along with also also Raymond James cut their cost targets on Netflix ahead of its earnings report, due to a combination of the strength of the dollar, rising interest rates along with also also increasing expenses for the company.
Still, Netflix shares are up more than 80 percent This particular year, as consumers continue to cut the cord with traditional TV providers. EMarketer projects more than 60 percent of the U.S. population will be using over-the-top services like YouTube, Netflix, Amazon, Hulu along with also also HBO today by the end of the year, an increase of 3 percent by a year earlier.
—CNBC’s Sara Salinas contributed to This particular report.
Disclosure: CNBC parent company NBCUniversal is usually an investor in Hulu.