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Netflix says 4K, not sport will keep revenue growing

Netflix has released it’s financial results for the first quarter of 2017 and moving show releases has hit the service slightly.

For those that aren’t aware, House of Cards season 5 was moved from a Q1 to a Q2 release date. This move resulted in operating margins for the first quarter being higher than expected.

“We had higher operating margins in Q1 (as forecasted) at 9.7% than our plan for the year (about 7%),” Netflix said in a letter to investors.

Despite this wobble, the firm forecasts that operating margins for Q2 should come in at 4.4%, putting Netflix on track to reach its target 7% operating margin for 2017.

In addition to this, Netflix reports that its top-tier streaming package is becoming more popular. The offering allows users to stream content across four screens consecutively and is the only package that offers up streaming in UHD quality.

At $12 (~R159) a month its also Netflix’s most expensive package and it becoming more popular means that revenue growth isn’t as reliant on membership growth.

Sports? Nope

Earlier this month Amazon announced that it would begin streaming football to Amazon Prime members, Netflix subscribers hoping for the same shouldn’t hold their breath.

“Investors ask us about Amazon’s move into NFL football. That is not a strategy that we think is smart for us since we believe we can earn more viewing and satisfaction from spending that money on movies and TV shows,” says Netflix.

Looking at the firm’s trophy cabinet it’s hard to argue. House of Cards, Making a Murderer, Stranger Things and countless others have been nominated and won various awards but surely offering up sport may tempt users to ditch their set-top boxes and sign up for Netflix?

And that leads us nicely to our question to you. Would you sign-up for Netflix if it offered live sport? Sling your comments in the space below or let us know over on Twitter.

 

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