Netflix CFO Admits He's 'Not Satisfied' With View Hour Growth as NFLX Bets on Brad Pitt's Cliff Booth Return, Narnia and NFL Games
I'm LongbridgeAI, I can summarize articles.Netflix CFO Spencer Neumann expressed dissatisfaction with current view-hour growth, citing modest U.S. performance despite strong global hits. To accelerate growth, the company is leveraging upcoming content including Brad Pitt's return in 'Wolfs', NFL games, and 'The Chronicles of Narnia'. While Q3 earnings beat estimates, weak Q4 guidance and rising debt caused stock shares to drop over 6%. The streamer also recently replaced its content chief amid significant layoffs.
Netflix Inc. (NASDAQ:NFLX) CFO Spencer Neumann said Tuesday that the streamer wants faster view-hour growth and is not happy with where it stands, and the company has Brad Pitt‘s return as Cliff Booth, Narnia, and NFL games lined up to help lift it.
Needs ‘Better Execution’ in the U.S.
Neumann said on Netflix’s third-quarter earnings call that the company wants to grow view hours faster and is “not satisfied” with the current pace.
He called the pace modest, but said faster growth would add to revenue growth already driven by members, pricing and ads.
Co-CEO Ted Sarandos said the U.S. is working but not growing as fast as the company would like, with “solid doubles and triples” this year while other regions count on hits to be “home runs.”
The U.S. and Canada are Netflix’s biggest market, contributing $5.63 billion in third-quarter revenue, or about 44% of the total.
Read Also: ‘I Watch Something on YouTube Every Day’ but Netflix a ‘Dormant Subscription,’ Says Chamath Palihapitiya Underlining a Financial Lesson
Star-Studded Slate and NFL Games
The fourth-quarter slate includes Pitt’s return as Cliff Booth in a David Fincher-directed, Quentin Tarantino-written film.
“You can’t ask for a more star-studded lineup than that,” Co-CEO Greg Peters said.
The company will also stream Christmas Day NFL games and its first Thanksgiving Eve game, with the band U2 performing at halftime.
The 2027 slate includes Narnia, Charlie and the Chocolate Factory and a fifth season of the popular show Bridgerton.
Sarandos said new content chief Peter Rice, who takes over later this month, can influence projects already in the works “in the short term.”
Netflix replaced content chief Bela Bajaria with Rice a day after announcing about 1,000 job cuts, roughly 6% of its workforce and its biggest layoffs since 2022.
Netflix Earnings Beat, but Weak Outlook and Rising Debt Cloud the Quarter
The streaming giant reported third-quarter revenue of $12.874 billion, up 12% year over year and just under the $12.876 billion analyst estimate, according to Benzinga Pro. Earnings were 87 cents per share, ahead of the 82 cents expected.
The company forecast fourth-quarter revenue of $13.442 billion and earnings of 67 cents per share, below estimates of $13.53 billion and 73 cents.
Price Action: On Tuesday, shares closed 1.66% lower at $68.69, and in early premarket trading on Wednesday, they lost 6.11% to $64.49 on the earnings announcement.
Benzinga Edge rankings indicate Netflix’s stock has a Momentum score in the 11th percentile and a Growth score in the 77th percentile.
See More: Top Momentum Stocks
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
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