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Netflix shows weakness as it loses 130K U.S. subscribers

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Subscriber growth is still the key metric by which Netflix’s performance is measured, and by that standard, the company just posted some disastrous second-quarter results.

The company added 2.7 million paid memberships, dramatically fewer than the 5 million it had forecast. Moreover, the company posted a net subscriber loss (down approximate 130,000) in the U.S. for the first time since 2011. The company pegged the losses and forecast miss on a weaker content slate during the quarter and promised the third quarter would see a return to growth. With help from the hit new season of “Stranger Things,” Netflix expects to add 7 million paid memberships (800,000 in the U.S. and 6.2 million internationally) in the third quarter.

During the company’s earnings call, Netflix CFO Spencer Neumann acknowledged the potential impact that price increases (between $1 and $2 per month) during the quarter may have had on Netflix’s subscriber growth but said that any side effects are worth it since price hikes are revenue accretive.

“While there may be some short-term slowdown in subscriber growth because of pricing, that increased revenue is very good for our business and ultimately for our members because we reinvest the bulk of that back into great content and great product experience for our members,” Neumann said, according to a Seeking Alpha transcript.

Whatever the reason for the subscriber growth miss, Netflix is feeling the effects in the stock market, where its shares plummeted more than 11% since the closing of the market Wednesday.

Barclays analyst Kannan Venkateshwar said that by missing so badly on its second-quarter subscriber forecast, Netflix runs the risk of losing credibility with its forecasts going forward. He also noted the upcoming loss of important licensed content combined with the launch of new competitors like Disney+ will make the next few quarters crucial for the company.

On Roku TV and Amazon Fire TV Platforms

“We believe the next three quarters are likely to be pivotal for the next phase of the NFLX story – another bad quarter will probably make it tough to make a pricing power argument but if the company is able to add more subs this year than last year and into Q1'20, there would be no credible bear case left in the story, in our view,” wrote Venkateshwar in a research note. “Therefore, in some ways, the next three quarters could define the next phase for the stock.”

MoffettNathanson analyst Michael Nathanson said that if Netflix’s third-quarter subscriber forecast holds up, the company’s domestic net subscriber adds will still be pacing at 60% of 2018, amounting to the first meaningful year-over-year deceleration for the company.

“In other words, the S-Curve in the U.S. may be finally flattening after all these years of growth,” wrote Nathanson in a research note. “As such, it will increase doubts about Netflix’s final resting subscriber base,” adding that the number could be closer to 80 million rather than the 88.4 million MoffettNathanson assigned in its previous valuation for Netflix."

Neil Begley, lead Netflix analyst and senior vice president at Moody’s, said Netflix’s weak second-quarter subscriber additions are symptomatic of a maturing U.S. market for the company, seasonal volatility and the growing importance for Netflix to maintain a steady string of hit content releases.

“Still, we remain confident that Netflix will continue to grow subscribers year over year, reaching 200 million paid streaming subscribers in FY 2021. We also project that the company has the ability to reach cash flow break-even by 2023 as it grows total margins to the low to mid 20% range,” wrote Begley in a research note. “However, we believe that initial low-priced new streaming entrants such as Disney+ will garner subscriber attention, which could limit Netflix’s future pricing power until those new entrants reach parity in price and new content.”

 

Original Article

FX+ subscription service shutters following Disney acquisition

The FX+ subscription streaming video service, which launched in 2017, is shutting down. The move comes after Disney’s acquisition of Fox and planned November launch for Disney+.

A note on FX+’s website explains that the service will no longer be available beginning August 21, 2019. Subscribers can continue watching through August 20. Current subscribers can access past seasons of FX and FXX originals through August 20, 2019 in the FXNOW app or online at www.FXNetworks.com.

FX said it will automatically stop billing for the service on August 21.

“There is no need to cancel your subscription. If you subscribe through your TV provider, your TV provider will discontinue billing you for the service,” the company wrote on its website.

Put your unique messages, your products, your services on TV today! Go to I'm on TV! and let's get you started.

FX+ launched on Comcast's Xfinity platform in September 2017, and about one year later it became available for customers of many other pay TV providers. Unlike lots of other streaming video services, FX+ required customers to have a pay TV subscription before they could get FX+’s commercial-free service. The service was available for $5.99 per month.

But FX+ is done now, as Disney likely found the service incongruent with its streaming strategy anchored against ESPN+, Hulu (of which Disney now has full control) and the upcoming Disney+.

FX+ never released subscriber totals. But FX Networks CEO John Landgraf last year told FierceVideo that each week FX was seeing steady increases that were helped along by the launch of new shows.

Original Article 

Roku has skyrocketed 240% this year. We spoke to 3 experts about why, and what investors should be looking for in the future. (ROKU)

  • Roku, a provider of smart TVs and a wildly popular streaming platform, has risen 240% since the start of the year. 
  • Markets Insider spoke with three Wall Street analysts to dive into the metrics, initiatives, and trends that have helped elevate Roku's market value this year. 
  • The analysts mentioned everything from Roku's ability to secure low-cost content, to how the company has positioned itself to soak up subscription revenue from new streaming platforms coming to the market. 
  • Watch Roku trade live.

The race to dominate the streaming world is on, with companies spending billions of dollars to acquire content rights and to build direct-to-consumer video platforms. So far, the company's that's grown faster than giants like DisneyNetflix, and Amazon is one that owns no content.

That would be Roku, which sells smart TVs and a wildly popular streaming player. The Los Gatos, California-based company seen it's stock price explode by more than 240% since the beginning of the year.

Roku acts as an operating system for streaming. Rather than owning content, it stitches together the fragmented marketplace by providing one location to access a variety of over-the-top media services like Netflix, Hulu, and HBO. Roku also offers its own ad-supported streaming option called The Roku Channel.

Markets Insider spoke with three Wall Street analysts about the five main drivers behind Roku's massive jump in 2019. Here's what they said:

(1) Every company wants a piece of TV and movie streaming, and that's a good thing for Roku

The direct-to-consumer streaming space is about to get a lot more crowded, with the likes of Disney Plus, Apple TV Plus, and AT&T's HBO Max expected to roll out in the coming months.

Mark Mahaney, a managing director, an analyst at RBC Capital Markets says this is good news for Roku.

That's because Roku has positioned itself to benefit from the launch of new streaming platforms. If subscribers sign up for a streaming service on Roku, the company keeps a portion of that revenue.

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"Roku is trying to be the Switzerland of streaming, the operating system that everybody uses to get the large platforms," Mahaney told Markets Insider. "The role of Switzerland is a lot more valuable in a world where there are multiple superpowers rather than just one."

(2) Roku is the brand name in Smart TVs

Mark Zgutowicz, a senior research analyst at Rosenblatt Securities, said Roku's effort to brand itself as the go-to company for low-cost smart TVs has helped it beat out competitors like Amazon's Fire TV.

"You can't underestimate how important brand is," Zgutowicz told Markets Insider. "Despite Fire TV's competitive price, content, and interface, you see much more branding around Roku and that's really what sells in the end."

Roku's branding efforts appear to be paying off. Anthony Wood, the company's founder and chief executive officer, said in an earnings call that one in every three smart TV's sold in the US last quarter came from Roku.

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(3) Low-cost content

Companies with huge content portfolios like Disney and Comcast are rushing to building streaming platforms, and existing services like Netflix and Amazon Video are investing billions in new shows and movies. Roku, instead, has doubled-down on its position as a content distributor and operating system.

The company's lack of "Roku Originals" might work in its favor. Alicia Reese, a senior associate and equity research at Wedbush Securities, said Roku's strategy of procuring obscure, inexpensive content that can't be found anywhere else helps it compete with major content owners.

"Roku doesn't need to own the content, as long as it has relatively inexpensive but compelling enough content for the Roku Channel it can continue to keep eyeballs on its platform," Reese said.

(4) International growth

Investors are also looking at Roku's prospects for international growth as the company continues to reach higher levels of penetration in the US.

A recent report from Strategy Analytics, a provider of industry data and research, found that there are now as many as 41 million Roku devices in use, which represents a 15.2% chunk of all streaming devices in the US.

"I think they would have reasonable success in international markets as an operating system, and as a platform for ad-supported streaming and subscription supported streaming," Mahaney said.

(5) Profit potential

Roku lost $9.7 million in the first quarter of 2019, up from $6.6 million from the same quarter last year.

Reese said Roku is spending money on hiring new talent to expand globally, but they can pull back on that hiring if they need to.

"They do have full control over when they reach profitability and right now they're very consciously reinvesting in the business to grow internationally," she said.

The key metrics to look at for Roku are the average revenue per user and active accounts, which Reese said investors care about more than profitability.

"If they can increase the money they get from each account, that's a great sign," she said.

Now read more markets coverage from Markets Insider and Business Insider @ Markets Insider

Getting New Clients

EIGHT SIMPLE THINGS YOU CAN DO DAILY TO GET A CONSTANT FLOW OF NEW CUSTOMERS AT YOUR DOORSTEP.

So I get this really long email from Karl Bryan of Six Figure Coaching (I recommend you join them even if you are not in the coaching business. Really good stuff they put out!) But anyway the email had in it some questions that made me think and I wanted to share just a part of the email with you all today.

It's about getting eyes on you. Making sure people know you are around and what you do. They ask a bunch of questions that if you were to answer them positively your business would always be growing. It is worthwhile saying that if you did this on a daily bases you would be very busy during your business hours.

Just one side note here... I have to sections of my day. The first is "promotions" which is what I do in the mornings. I don't deal with clients in the AM hours at all. Even my scheduling program does not start until 1 pm. I do this because I understand the power of promoting myself. So, That's what I do in the AM hours. The questions below for me anyway would be done in the AM hours and leaving the PM hours for actual client contact.

With that said here are the questions:

  1. Do you friend request / connect with a new small business owner on each of the primary social media platforms (FB, IG, LI) on a daily bases?
  2. Do you post something of value for business owners on FB, IG, LI daily?
  3. Did you call and give a business owner guidance over the phone yesterday?
  4. Did you call a potential JV and provide value yesterday?
  5. Did you comment on a business owners' post yesterday?
  6. Did you send a private message to a business owner yesterday?
  7. Did you offer to be a guest on a popular podcast yesterday and explain the value you'd bring to their audience (they don't want you on the podcast, they want the value you'll bring to their audience)?
  8. Did you LOOK / RESEARCH for a value that you can post to these folks yesterday?

You don't need to create it all yourself ... you can find it and just report on it.

If you were to do these simple steps daily your calendar would be filled with new clients real soon.

I hope this helps!

Quibi expects 75% of subscribers will opt for $4.99/month ad-supported tier

Short-form video streaming service Quibi is still nearly a year away from its 2020 launch, but its leaders are already sharing specific expectations for the service.

Founder Jeffrey Katzenberg and CEO Meg Whitman were at the Cannes Lions show in France this week where they revealed that Quibi has already sold approximately $100 million in advertising inventory ahead of launch. The company has signed on six brand launch partners: Procter & Gamble, PepsiCo, Anheuser-Busch, Walmart, Progressive, and Google, according to Deadline.

Advertising dollars will be a key source of revenue considering the split between ad-supported and ad-free subscribers that Quibi is expecting. Whitman said that the service is anticipating 75% of subscribers will go for the less expensive $4.99-per-month ad-supported tier.

Quibi, which is officially launching on April 6, 2020, will also offer a $7.99-per-month tier with no ads.

Although it sounds like the majority of Quibi subscribers will be seeing ads, it doesn’t sound like they’ll be bombarded. As Deadline points out, the service is planning to show about two and a half minutes of advertising during every hour of programming, which will be broken up into short segments. That’s well below the average amount of advertising per hour on broadcast, cable and other AVOD services like Hulu.

Earlier this month, Quibi announced that the ad-supported tier will include one pre-roll ad before each video segment. The ad will be 10 seconds if the video is less than five minutes, and 15 seconds if the video is between five and 10 minutes long.

Sponsor a show on Toliver TV Network

According to Variety, Whitman said that Quibi will have approximately 7,000 pieces of content when it launches. Series on Quibi will be two-to-four hours long and will be divided into segments that will be no longer than 10 minutes each.

In time TOLIVER TV NETWORK may become a subscription-based network. It's interesting to see what the other networks have to offer. Some of them are no different than Netflix or Hulu and yet they think they can get subscribers.

I want my network to be different and better than all the rest!

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Global AVOD revenues to reach $56B by 2024 – report

2019-04-08_0845

The world is steadily embracing free, ad-supported video streaming, which will see massive growth in overall revenues during the next five years.

According to Digital TV Research, global AVOD revenues will more than double between 2018 and 2024 to reach $56 billion.

The Asia Pacific region has been a driver for AVOD growth. AVOD revenues for the region totaled $10.73 billion in 2018, accounting for 49% of the global total. Asia Pacific AVOD revenues are projected to reach $25.14 billion by 2024, but Asia Pacific’s share will fall to 45%.

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North American AVOD revenue totaled $6.1 billion last year and will grow to $7.7 billion this year. By 2024, North American AVOD revenues will reach $20.3 billion.

“China is the largest AVOD country – commanding 36% of the 2018 global total, with $7.78 billion. Similar to much of Asia, most OTT viewing in China is on mobile phones to AVOD-supported platforms. China will still generate 29% of the global total by 2024 with $16.60 billion,” said Simon Murray, principal analyst at Digital TV Research. “However, the US will become the AVOD leader by 2023. Several large platform launches are expected in the near future in the U.S. The U.S. will more than triple its AVOD total between 2018 and 2024 to $19.23 billion – or 34% of the global total.”

The U.S. has seen momentum in the AVOD space. Competitors including Roku Channel, Xumo, Pluto TV and Tubi have all experienced fairly rapid active user growth. Amazon has begun to accelerate its AVOD strategy with international expansion for IMDb TV and NBCUniversal is planning to launch a new ad-supported streaming service next year.

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Choosing A Business Opportunity – Starting Your Own Business

oPPORTUNITY MISSED OR TAKEN

Millions of people are desperate to escape the 9 to 5 grind. One popular alternative is to look for a business opportunity that turns you from an employee into a self-employed entrepreneur running your own business.

 

There are many good reasons why this can be a wise move. Being your own boss means you can set your own hours. This can be very important if you have small children, or simply want to spend more time at home. Working from home can also save valuable time if the alternative is spending two or three hours every day commuting back and forth to your workplace. And of course, working for yourself also gives you the opportunity to make a whole lot more money.

 

In other words, being your own boss gives you that valuable commodity called freedom. It sets you free from the limitations of being someone else's paid employee, and in return makes you responsible for your own future. As a self-employed entrepreneur, you are free to set your own hours, establish your own work habits, choose what work you will do or will not do, create your own products, drum up your own customers, and do what you have to do to make those customers happy.

 

And perhaps most importantly, when you are self-employed you are free to set your own prices and make as much or as little income as you are able. You will not have to answer to anyone other than yourself, your suppliers, and of course, the ever-present taxman after you become successful.

 

**How to get started -- Two Alternatives**

 

There are two obvious ways you can go about starting your own business. The first way is to quit your day job and launch full bore into your new business. We'll call this the "All or Nothing Approach". The second way is to continue on with your current employment and develop a business on the side, in your spare time. We'll call this the "Spare Time Approach".

 

Depending on your point of view, taking the All or Nothing Approach can be either an act of bravery or just plain recklessness. Unless you are independently wealthy, planning and timing are very important with this approach. That's because once you leave your previous employment your source of income will be gone, and you will have a limited amount of time to make your business work. It is a "sink or swim". And you can sink pretty quickly without a source of income.

 

So that means you should plan the changeover to self-employment very carefully. Every situation will be different. An acquaintance of mine was able to step from his quasi-government job into a private consulting business because he spent the last few months of his employment developing leads and contacts within his industry. When he went on his own, he had customers waiting in the wings and was able to more than double his income in his very first year.

 

But most of us are not so lucky. We do not have the quality leads or specialized skills. Nor do most of us have the opportunity to use our present employment to build a launching pad of potential customers before we take off into the wild blue yonder of self-employment. Most of us are starting from scratch with a few vague ideas, a questionable set of yet-to-be-defined skills, and severely limited income. So our venture into self-employment had better take off within a few months or we're likely to crash and burn.

 

That is why the Spare Time Approach is best for most new self-employed entrepreneurs. The Spare Time Approach lets you test your ideas, develop your skills, and build your business slowly. If you are unsure about the products or services you intend to sell, the Spare Time Approach lets you try out different product lines and see how well they fit in with your overall objectives. Often new entrepreneurs find that their first ideas are not realistic, or there is no market for the services they want to provide. Or they find they cannot charge enough to make any money providing the products or services they have chosen.

 

**Choose your product carefully**

 

Like all new entrepreneurs, whether you take the "all or nothing approach" or the "spare time approach" you should be very tight-fisted with your limited resources. That means do not invest any serious money in a product or business idea until you have checked it out thoroughly. The best way to "check it out" is to:

 

  • Talk to people who are already selling the product or service.

 

  • Establish the credibility of the person or company providing the product or service.

 

  • Make sure the company provides on-going support for their product(s).

 

  • Make sure there are no hidden or unexpected costs (such as franchise fees) that will eat away your profits.

 

This applies whether you are looking at an online product such as an MLM or affiliate scheme, or a more traditional product or service aimed only at local customers.

 

For example, an associate of mine produces Business Card Displays. The idea behind this product is that it provides new entrepreneurs with the opportunity to set up an advertising service for local businesses. With this product, the entrepreneur creates a network of displays placed in high traffic retail outlets like grocery stores, hair salons, and bowling alleys. Then local advertisers can place their business cards in one of the compartments in the displays across the network. If someone browsing one of the displays sees a service they are interested in, they just take a card for future reference.

 

Sure, it's not everybody's cup of tea. But for someone willing to put in a few months of hard work at the beginning, it is a pretty easy way to create a business that will return a handsome income for years to come.

 

And this manufacturer stands behind his product. He can show you examples of successful advertising networks where his displays are used. He will also provide testimonials and contact information from real people whom you can ask how well the product is working for them. And to top it off, he uses the product himself in a network of over 40 displays and can provide hands-on information about how it actually works in a real-life situation.

 

This is pretty rare in the world of "business opportunities". Many are run by "take the money and run" types who make wildly exaggerated claims about how successful you can be. But in many cases, they have never actually made the idea work for themselves.

 

As any successful entrepreneur will tell you, your choice of products is crucial to your success or failure. Many products are simply bogus ideas with no hope of working. And many others are designed to produce maximum profits for their creators, and minimum profits for people like you and me who sell them. So, no matter how hard you work, or how committed you are to be being successful, if you choose the wrong product you will be operating with a millstone around your neck.

Business Coaching

BUSINESS NOT GROWING?                    

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I can help you find the stuck points in your business and direct you to answers you need to get your business flowing. Your business will grow by 6X to 8X if you follow my suggestions.

http://CoachMaxwell.Com

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WHY YOU IS POOR and why it will never change![video]

“If you don’t change the way you think you will always be where you are right now”.

Change the way you think and you can change your world!

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Coach Maxwell with Robert T Kiyosaki at his office