Monday, 19 February 2018

Netflix looks at new partnerships with ISPs as profits boom in Q4 2017

By Chris Kelly, Total Telecom
Tuesday 23 January 18

In 2017, Netflix signed agreements with Deutsche Telekom and Verizon, as it sort to build bridges with network providers

Online streaming giant NetFlix posted a very strong financial report on Monday, as the firm revealed a 32.6% year-on-year jump in revenues to $3.286 billion in Q4 2017.    The company's shares jumped by 8% this week, after it revealed that it had added more than 8.3 million new subscribers across the globe…

Online streaming giant NetFlix posted a very strong financial report on Monday, as the firm revealed a 32.6% year-on-year jump in revenues to $3.286 billion in Q4 2017.   

The company's shares jumped by 8% this week, after it revealed that it had added more than 8.3 million new subscribers across the globe. 6.36 million of these new subscribers were from international markets, while the remaining 1.94 million were based in the US.

"We had a beautiful Q4, completing a great year as internet TV expands globally," the company said in a statement to the press.

Netflix took the opportunity to add its weight to the net neutrality debate, saying that it believed that "a strong internet should have enforceable net neutrality rules, so we and other internet firms are backing the Internet Association’s challenge to the FCC’s action". The company also said that it was preparing a number of partnerships with ISPs to provide more streamlined services to its customers.

"Examples of these types of partnerships that we struck in Q4 include an expanded global partnership with Deutsche Telekom and with Cox Communications and Verizon Communications in the US," read the report.

Netflix and other OTT service providers could be looking ahead to a transformative couple of years, as they consider the possibility of branching out to the provision of mobile phone and broadband services. A recent survey, found that 75% of people in the UK would be willing to purchase their mobile and broadband services from an OTT provider. 

“Telco partnerships will remain important for further subscriber growth over the next twelve months. We believe Netflix must continue focussing on adding more subscribers. Such growth increases revenue and profitability. Despite its reluctance, the company needs to diversify its business model by offering other services,” said Paolo Pescatore, VP, Multiplay and Media, CCS Insight.

“As many local providers and operators strengthen their video services, the competitive environment continues to intensify. Netflix will face stiffer competition as rivals launch live TV services and move into sports rights, as shown by recent efforts from Amazon and Facebook, in the US and Europe. And let’s not forget the rapid emergence of new players including Disney and other content and media owners which previously have been a key partner. All are making significant moves and taking huge bets in video,” he added. 

Since you're here...

...the Telecoms industry is characterised by constant change and evolution. That's why it's crucial for telecoms professionals to keep up-to-date with what is happening. Join 35,000+ of your peers and sign up to our free newsletter service today, to be in the know about what is going on. PLUS, as a member you can submit your own press releases!

See all membership options

Please enable JavaScript to view the comments powered by Disqus.

Newsletter signup

Quickly get on board and up to date with the telecoms industry