After years of asking, Netflix is finally allowing their subscribers to download select movies and TV shows from their service. You can now watch most of their Originals, such as The Crown, Narcos, Orange is the New Black and House of Cards on an airplane or train without worrying about the wifi connection. (The new season of Gilmore Girls, Gillian Anderson’s The Fall, Luke Cage and a few others are not currently offering this feature.)
Below are my key takeaways from the Lionsgate Q2 2016 (their First Quarter Fiscal 2017) Earnings Call on Aug 4:
Jon Feltherimer, CEO, said in his opening remarks, “During the quarter, we took significant steps to scale our content portfolio, and expand its access to world class distribution. Upon closing, our acquisition of Starz will be the largest and most transformative transaction in our history.”
Lionsgate agreed to buy premium channel Starz for $4,400MM and is expected to close by year end. The deal will have savings in production, manufacturing and marketing spend, with incremental tax savings of $150mm per year through 2021.
Revenue in the quarter was up 35% YoY to $553.6MM, due to strong gains in television production revenue.
Below are my key takeaways from the Netflix Q2 2016 Earnings Call on July 18:
Total revenue in the quarter was $2,105MM. US streaming represented 57% of that total, down from 62% YoY, to $1,208MM. International streaming revenue was $758MM, compared to $455MM last year. And Domestic DVD was $139MM, down 15% from Q2 2015.
83MM total members worldwide, growing by 1.7MM, which was below the forecast of 2.5MM. Attributed to an uptick in churn from the un-grandfathering of tenured members to a higher monthly price point.
Launched the 4th season of Orange is the New Black and the 2nd Adam Sandler film, The Do Over, which, upon launch, was the #1 most-watched film on Netflix in every territory. Expected to have over 600 hours of new content in 2016.
17 original series, docs, films and comedy specials received 54 Primetime Emmy nominations (up from 34 last year), making them the 3rd most nominated network (behind FX and HBO). 9 kid’s shows received 33 Daytime Emmy nominations, more than any network.