Yahoo Finance Netflix's (NFLX) New Danish Movie Expands International Content
Netflix NFLX is expanding its international content portfolio with the adaptation of Karen Blixen’s novel, Ehrengard. The movie, Ehrengard: The Art of Seduction, is directed by Academy Award, Golden Globe and two-time Palme d’Or winner Bille August. It is slated to release globally on Netflix in 2023.
Ehrengard: The Art of Seduction expands the streaming giant’s Danish language content portfolio. It is bringing content based on different languages, including Swedish, Sami, Korean, French, Spanish, Thai, German and several Indian languages to its subscribers, which has been a key catalyst.
In the recently concluded first-quarter 2023, Netflix witnessed subscriber growth in all international markets. Europe, Middle East and Africa; Latin America; and the Asia Pacific’s paid subscribers increased 4.9%, 4.1% and 17.1%, respectively, on a year-to-date basis.
International shows also keep subscribers engaged in the platform. Notably, per Netflix’s latest Top 10 list, Black Knight was the most watched Non-English TV show, with 31.22 million hours viewed for the week of May 8.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Returning seasons of Korean dramas, Doctor Cha and The Good Bad Mother, Turkish drama The Tailor, Seasons 1 and 2 of Colombian drama The Marked Heart, Japanese drama Sanctuary, Season 2 of Spanish drama Welcome to Eden and Danish thriller The Nurse also captivated viewers in the week.
Strong Portfolio to Drive Growth
Netflix’s strategy to support communities in the regions it operates improves its footprint. Its ever-expanding foreign language content portfolio has been a major growth driver, as the company continues to face stiff competition from the likes of Apple AAPL, Disney DIS and Comcast CMCSA in the saturated streaming market.
The company’s strong and diverse content portfolio has been a major growth driver in recent times. It gained 1.75 million paid subscribers globally in the first quarter of 2023. Hits like The Night Agent, The Glory, Full Swing and That 90s Show helped Netflix win subscribers.
However, average revenues per membership declined as the company continues to face stiff competition in the streaming space.
For the second quarter of 2023, this Zacks Rank #3 (Hold) company forecasts earnings of $2.84 per share, indicating a 20% decline from the figure reported in the year-ago quarter. Total revenues are anticipated to be $8.242 billion, suggesting year-over-year growth of 3.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
What Awaits Netflix Shares in 2023?
Netflix shares have gained 13.2% year to date, outperforming the Zacks Consumer Discretionary sector’s growth of 6.1%. It also outperformed Disney but underperformed Apple and Comcast shares. Disney, Comcast, and Apple have returned 4.7%, 13.6% and 32.4%, respectively.
Netflix is expected to continue dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content. However, its initiative to curb password sharing is expected to hurt subscriber growth in the near term.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $8.25 billion, indicating 3.47% growth from the year-ago quarter’s reported figure.
The consensus mark for second-quarter 2023 earnings is pegged at $2.80 per share, down 3.8% over the past 30 days, indicating a decline of 12.5% from the year-ago quarter's reported figure.
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