Netflix on Monday missed its own estimates for subscriber growth by one million customers.
In its second quarter results causing its stock to tumble.
Joan, is this a big issue for the company or do you think it's just gonna be short term bump?
I think it's gonna be a short term bump.
You've got to keep in mind that Netflix stock, people that invest in Netflix stock, they are very trigger happy.
They love these 14% ups and downs as not unusual after an earnings report and this was a significant miss for them, but you've got to keep in mind for average people, they gained Four million customers just not the five million they had told people.
And there's some lumpiness, that's the term.
There's some lumpiness in their results.
Sometimes they beat by significant amounts and sometimes they miss.
They don't miss often but they do miss sometimes.
Generally speaking, Netflix isn't sweating it for one and it seems like this is just a road bump.
Talk to me a bit about how much they spend on content.
The last I checked, it was something like $8 billion, which is significantly more than competitors like HMO or Amazon.
So this year they're spending $8 billion.
They're expected to spend as much as $8 billion on their originals, and other content And spend another $2 million just on marketing the original.
So all in all, their content budget is $10 billion so that far outstrips.
Yeah, that far outstrips any other, if you look at HBO, they only really create I think, don't quote me on this, but I think they only make 40
If they only make 40 original pieces of content a year.
Netflicks got Emmy nominations.
Just Emmy nominations for 40 pieces of content this year.
Which is interesting.
We're talking about how much money they're spending.
And the other thing I wanted to ask you about was It looks like it's actually benefitting them, right?
I mean, like, the Emmy nods came in and they actually broke HBO's seventeen-year streak of the most Emmy nods.
So, the executives were happy to talk about that yesterday too, as everyone was selling off all their stock, it's like wait, wait, wait, the Emmy's loved us this year.
The Emmy's always love Netflix, and that's what happens when you...
Are spending 10 billion dollars on content.
You can create so much that you also, and when you let creators have mostly a hands free experience.
They don't have exactly what I was giving them now it's.
So they're getting really sophisticated creators, producers and directors.
To make contact there.
Because they're just like shoveling money at them.
So they are creating good stuff and that works in their favor.
They've been growing like crazy even though they haven't grown in the last quarter quite as much as was expected.