Will Netflix’s continued global expansion and increasing content licensing expenditures cause it to end up in the red for the most recent quarter. That’s exactly what’s going to happen, if B Riley & Co. analyst Eric Wold is to be believed.
Netflix is anticipated to add 1.4 million domestic streaming subscribers, lose 700,000 disc subscribers, and add 900,000 international streaming subscribers this quarter.
Wold thinks that big content licensing deals from rival Amazon Prime Instant Video and other market pressures are going to continue to present challenges to Netflix’s attempts to be profitable. Said Wold:
“We believe the building competitive pressures in 2012, even without Redbox Instant, was driven by the launch and expansion of other bundled offerings and the ubiquitous availability of content — a phenomenon that is only likely to build further in 2013,”
It will be interesting to see how Netflix’s numbers turn out when they are released on January 23. It will also be interesting to see what happens to Netflix revenues when Redbox Instant officially launches.
What kind of ride do you think Netflix is in for this year, Insiders?
[via Home Media Magazine]