Netflix earnings drop by 30pc to US$271m

Business | 18 Jul 2019 3:19 pm

Netflix is still burning through more cash than it is bringing in.

In the second quarter, it registered a negative cash flow of US$594 million and expects to accumulate a negative cash flow of US$3.5 billion for the entire year.

Part of that outgoing money will go toward the development of more original shows to replace some of the programming that it has been licensing from Disney, AT&T and NBC, all of which are reclaiming the rights for their own streaming services. The losses include “Friends” and “The Office,” long-defunct series that still remain among the most-watched shows on Netflix.

But Netflix still posts profits due to the way entertainment companies are allowed to account for their programming costs.

In the most recent quarter, Netflix earned nearly US$271 million, a 30 percent drop from the same time last year. Revenue climbed 26 percent from last year to US$4.9 billion.

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