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Netflix shows no acquisition plans to add 1.5 million subscribers

The streaming giant told investors Tuesday that he doesn’t think he needs to grow to compete while competition intensifies and rivals are joining to create a more formidable entertainment platform.

In a second-quarter letter to shareholders, Netflix said, “We don’t consider assets to be’essential’and we haven’t yet found a large asset that is compelling enough to take action.” I will.

The company said it believes that the possibility of streaming is driving the deal, but that media integration over the past few years has impacted its growth.

“We are primarily competing with ourselves to improve our services as soon as possible so that we can maintain a solid position and continue to grow steadily, as we have in the last 20 years or more. I’m sure, “Netflix said.

The Netflix declaration came when the company said it added 1.5 million memberships in the second quarter as streaming giants continue to watch. Slow growth of new subscribers Following the surge in the heyday of the Covid-19 pandemic last year.

Netflix says the pandemic has created what’s called a “lump” in increasing membership, showing a rise in growth last year and a decline in growth this year. According to the company, it has 209.2 million subscribers worldwide. Stock prices were flat in after-hours trading.

The world leader in the approach to streaming acquisitions is the opposition of other entertainment industries in the desperate stage of trading, hoping to attract content giants that could be Netflix’s formidable rivals.

May,

AT & T Co., Ltd.

And

Discovery Co., Ltd.

Agreed to integrate media business It will be a new independent company with assets in HBO Max, CNN, Discovery +, Warner Bros. Pictures and TV studios. last month,

Amazon.com Co., Ltd.

Signed a deal to buy MGM for $ 6.5 billion We hope to use the libraries and intellectual property of well-known movie and TV studios to enhance our Prime Video streaming service.

The transaction may not be closed.

Comcast Co., Ltd.

, NBCUniversal Parents and

Viacom CBS Co., Ltd.

Discussed Building a streaming partnership for the international marketAccording to people who are familiar with the problem.

Netflix avoids trading, but aims to expand into new businesses, especially games.Last week the company hired

Facebook

As Executive Mike Verdu Vice President of Game Development.. The company said it would focus on games for mobile devices and would likely rely on Netflix shows and movies for its content. The game is included with Netflix members at no additional cost.

“I think it’s time to learn more about how members value the game,” the company said in a shareholder letter.

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Have you seen Netflix more or less lately? Join the conversation below.

Netflix Chairman and Co-CEO Reed Hastings said in a video for investors on Tuesday that the company’s quest for games and other subsidies (such as retail) will withdraw from new profit centers and content businesses. Said that it was not intended.

“We are a single product company with a lot of support elements,” Hastings said.

Netflix’s addition of 1.5 million subscribers in the three months to June 30 exceeded the previously predicted addition of 1 million members. We added 10 million in the second quarter of a year ago, when much of the world was in blockade mode.

The Los Gatos, Calif.-based company’s total revenue increased from $ 6.15 billion in the previous year to $ 7.34 billion. Wall Street was expected to be $ 7.32 billion, according to FactSet.

Netflix earnings increased to $ 1.35 billion, or $ 2.97 per share. A year ago, we had $ 720 million in revenue, or $ 1.59 per share. Revenue missed a GAAP earnings estimate of $ 3.18 per share.

The Asia Pacific region is the company’s strongest in terms of new members, accounting for about 70% of its 1.5 million additional subscribers. In the United States and Canada, streaming giants have lost 400,000 subscribers. This has happened in these markets for the first time since the second quarter of 2019.

Engagement between Netflix subscribers also declined compared to the same period last year. However, that indicator increased by 17% compared to the second quarter of 2019.

Netflix expects the third quarter to be even stronger as media production delays are eased and fresher content is available. The company said it expects a net increase of 3.5 million people compared to 2.2 million people in the third quarter of 2020.

The pandemic continued to hamper Netflix’s original content lineup this quarter, but said the company expects it to be strong for the rest of the year.

Write to Joe Flint joe.flint@wsj.com

Correction and amplification
May, AT & TInc. And Discovery Inc. Agreed to integrate the media business into a new independent company. Earlier versions of this article were Discovery Inc. Was misidentified as Discovery Communications Inc. (corrected on July 20, 2021).

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Netflix shows no acquisition plans to add 1.5 million subscribers

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