Netflix to Disney: Hold My Beer
Netflix to Disney: Hold My Beer
The world’s biggest streaming service knocked it out of the earnings park, and that puts the squeeze on Disney to show the ad slump misery is waning
Netflix basically just delivered a message to rival Hollywood streaming platforms: “Hold my beer.”
Wall Street is diving back into the world’s largest streamer on Wednesday after it crushed third-quarter earnings, posting better-than-expected results across the board. Profits and revenue beat analyst projections, and the number of new subscribers had investors salivating after two straight quarters of declines. The news led one entertainment industry analyst to proclaim “STREAMING IS ALIVE” as shares catapulted more than 16% in after-hours trading.
The Los Gatos, Calif.-based company roiled the streaming industry by hemorrhaging customers during the first half of the year. Now, Netflix is literally taking swipes at rivals Disney, Warner Bros. Discovery, Amazon and Paramount after finally getting its house in order.
Co-chief executives Reed Hastings and Ted Sarandos threw down the gauntlet in their quarterly letter to shareholders, taking aim at anything with a plus sign after its name. “Our competitors are investing heavily to drive subscribers and engagement, but building a large, successful streaming business is hard — we estimate they are all losing money with combined 2022 operating losses well over $10 billion vs. Netflix’s $5 to $6 billion annual operating profit.”
“Well, thank God we’re done with shrinking quarters,” Hastings said while laughing during the company’s earnings call.
The insinuation, of course, is that competitors may not be able to make similar boasts as they unveil results during the next few weeks. Amazon, Apple and Comcast’s Peacock platform are on tap next week to deliver results, followed by WBD, Fox, Lionsgate, Paramount and Roku the week after.