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Netflix co-CEO Gregory Peters is not worried about the on-demand streaming service despite growing economic concerns. The entertainment industry has said it has proven to be “resilient” during tough times.
“We also have some comfort in the fact that entertainment has been fairly resilient in a historically tough economic situation,” Peters said in the company’s first quarter revenue report. He added, “Netflix is generally very resilient and, of course, hasn’t seen a major impact in these tough times, despite its much shorter history.”
This is because analysts question whether President Donald Trump’s tariffs could drive the US into a recession and will force consumers to rethink their spending on streaming services.
“We also have some comfort in the fact that entertainment is quite resilient in a historically tough economic situation,” said Gregory Peters, co-CEO of Netflix. (Courtesy of Comcast/Fox News)
Netflix has 70 million monthly active users with ad-supported plans
However, Peters said the company’s low-cost advertising plans available in its biggest market “give it more resilience.”
Netflix’s low-cost ad-supported tier, launched in late 2022, has proven to be popular among consumers as it accounts for 55% of new sign-ups in the available countries.
Netflix quarterly results beat Wall Street targets and how to look at revenue outlook
Peters said the company is paying close attention to “where consumer sentiment and the broader economy is moving,” but there is nothing important to note.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| NFLX | Netflix Inc. | 973.03 | +11.40 |
+1.19% |
During the three-month period ending in March, Peters said customer retention was “stable and strong.”
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He also added that the company’s recent price changes are in line with expectations and “the engagement remains strong and healthy.”
Netflix surpassed Wall Street’s expectations for quarterly results, offering bullish revenue outlook on Thursday, showing confidence amidst economic uncertainty.
Netflix reported Data compiled by LSEG shows that revenue for the first quarter was $10.54 billion, stolen historical analysts’ estimates of $10.52 billion.
The diluted share profit of $6.61 exceeded the consensus estimate of $5.71. During the quarter, the company released hits including the limited series “Youth”, the drama thriller “Zero Day” and the unscripted series “Isle of Temptation.”
The company forecasts revenues to increase to $11.04 billion between April and June, with analyst consensus exceeding $10.9 billion.
Netflix reported revenue of $10.54 billion in the first quarter. (Nikos Pekiaridis/Nurphoto via Getty Images/Getty Images)
Netflix has over 300 million global subscribers. In January, the company reported that it had added a record 18.9 million subscribers in the fourth quarter of 2024.
Reuters contributed to this report.
