Everything you need to know about Netflix right now
In case you were too busy rewatching the first two episodes of True Detective to pay attention to what's going on with Netflix, the company's recent earnings call is here just in time to remind you how wonderful your life is thanks to the streaming service.
In case you were too busy rewatching the first two episodes of True Detective to pay attention to what's going on with Netflix, the company's recent earnings call is here just in time to remind you how wonderful your life is thanks to the streaming service.
Netflix CEO Reed Hastings and CFO David Wells hopped onto Google+ (yeah, sometimes people actually use that thing) to discuss the company's 2013 Q4, upcoming seasons of Netflix original series, and everything else you could possibly want to know about the best $8 you spend every month.
Here's everything you need to know about the current state of Netflix.
First of all, let's remember that House of Cards Season 2 is less than a month away.
And it's not alone. The company's letter to shareholders outlines its content plan for the year...
In 2014, we anticipate building on our tremendous momentum with new seasons of House of Cards (Feb. 14th), Derek, Hemlock Grove, Orange is the New Black, Lilyhammer, and a fully exclusive, final season of The Killing; as well as additional episodes of Turbo F.A.S.T., and premiere launches of our first original animated series for adults, BoJack Horseman, and an epic series based on the adventures of Marco Polo from The Weinstein Co., and additional new kids series from DreamWorks Animation.
Orange Is the New Back's second season is slated for a summer release. That's as specific as they've gotten, thus far.
Contain yourselves, people.
Oh, and Netflix has amassed 44 million users.
Including 33 million in the United States. By the end of Q1 2014, they expect to have 48 million total subscribers.
They're making yacht-loads of money.
The company generated $48 million in profit in the fourth quarter of 2013. That's a year-to-year increase of 513 percent. Is that good, though?
Rest assured that you won't have to sit through commercials anytime soon.
Hastings adamantly reminds us that their business model puts the control in the hands of the consumer. When asked if the company has considered to implement pre-roll ads or other types of commercials, Hastings assures everyone that that isn't in the cards.
"Our brand—at least over the next couple years and at this point—really stands for that commercial-free experience that we have, where the consumer is in control of the experience. They get to watch when they want. They get to pause when they want. They can play it when they want. They can watch it where and when they want. So, it's fundamental to that control orientation that we don't cram advertisements down people's throats."
Amen.
They're looking to accommodate new subscribers with more flexible streaming plans.
Hastings said that Netflix has started a preliminary investigation into offering more flexible subscription plans for prospective users. He specifically mentions a plan that would allow for streaming on one device for $6.99/month. He says current users shouldn't worry, though, because they'd be "grandfathered generously."
Don't expect more new releases anytime soon.
When asked about the possibility of a more inclusive content offering for subscribers willing to pay a heftier sum of their hard-earned monies every month, Hastings explained that the company's competition dictates that they need to obtain exclusive rights content they make available. Basically, other companies won't share content with Netflix. Thus, Hastings doesn't foresee a larger content pool for more avid Netflixers being a possibility.
Bathe in the warmth of the announcement of a Netflix animated series for adults.
Expect BoJack Horseman to hit your queue later this year. It's a 12-episode animated series about a horse who used to be a pop superstar, but has fallen a few rungs down the social ladder and struggles with a drinking problem. Oh, and you might like to know that Will Arnett, Aaron Paul and Amy Sedaris will voice the series' main characters.
As far as net neutrality is concerned, Netflix is threatening to rally its army of subscribers if it has to.
Last week, a federal court struck down the FCC's net neutrality rules — and Netflix took notice. "Unfortunately, Verizon successfully challenged the US net neutrality rules," Netflix writes in its shareholder letter. "In principle, a domestic ISP now can legally impede the video streams that members request from Netflix, degrading the experience we jointly provide."
In a worst-case scenario, Netflix imagines a situation in which it would have to pay fees to ISPs to stop that degradation, but it sounds like the company wouldn't just sit back and let that situation happen. "Were this draconian scenario to unfold with some ISP," Netflix writes, "we would vigorously protest and encourage our members to demand the open internet they are paying their ISP to deliver. [The Verge]
Brace yourselves for a totally unconfirmed plan for a full-length, Netflix original feature film.
When asked about the notion that Netflix is gearing up to produce an entirely original, $100 million feature film, Chief Content Officer Ted Sarandos wouldn't confirm or deny the rumors. But, he had a lot to say about the blending of television and film.
"Without confirming or denying the range or the aspiration, I would say that, to the consumers, the line between a movie and TV is getting pretty blurry. So, TV shows are 13-hour movies and movies are two-hour TV shows. So, I think the way we're looking at it is that we want to create really compelling content in multiple formats. And the one thing that's evolving pretty dramatically, I think, is the interest and desire for movies in different windows than today's models allow for. So, while I think the viewing is moving dramatically toward at-home and on-Demand, movies still wait about a year behind theatrical before they're available to folks like HBO and Netflix. So, what we like to do is look at different ways that we can excellerate that window. And, maybe, like with original programming, the most effective way to make that happen is to just do it yourself."
BOOM.
If you need me, I'll be busy guzzling another pitcher of the Netflix Kool-Aid and selling my first-born for Netflix stock, which, by the way, was up 16 percent in after-hours and pre-market trading thanks to the bump in subscribers.
Click here to watch the whole earnings interview, if you've got nothing better to do and are really nerdy, like that.
























