Megahit “Squid Game” puts focus squarely on Netflix’s overseas growth

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Oct 19 (Reuters) – The success of the South Korean dystopian drama sequence “Squid Recreation” has led buyers to wager on Netflix Inc’s plans to discover extra worldwide content material to spice up slowing subscriber development.

With a 111 million-strong fan base in simply 27 days after its launch, the low-cost survival drama has develop into Netflix’s largest authentic present launch ever, underpinning its efforts to ramp up investments in abroad content material.

“We proceed to view worldwide growth as a key driver of subscriber development, notably in less-penetrated, rising markets,” Guggenheim analysts stated in a shopper word.

Within the first half of the yr, the streaming big had reported its slowest tempo of subscriber additions since 2013 as a result of coronavirus-led break in manufacturing.

However, as “Squid Recreation” grew to become an prompt worldwide sensation after launching in direction of the top of the third quarter, analysts stated precise international subscriber additions can topple estimates of three.8 million and profit the subsequent three months too.


Netflix has misplaced loads of market share because the onset of the pandemic as newer, extra unique platforms gained fast reputation from stay-at-home leisure seekers.

Apple TV+ , for example, is banking on the success of “Ted Lasso” and raised its share of the worldwide streaming pie by 75% this yr, in response to analysis agency Parrot Analytics.

Netflix’s most formidable challenger Disney+ sits on a base of 116 million paying subscribers in a brief span of two years.

In the meantime, AT&T-owned HBO Max raised its international subscribers forecast to between 70 million and 73 million by July, indicating the desire to stream content-on-demand is right here to remain.

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Worldwide reveals like “Cash Heist”, “Lupin” and “The Crown” have drawn cross-border fame and a number of other Emmy award nominations, serving to regular the abroad subscriber development.

“The streaming wars, as they presently stand, usually are not a battle to unseat Netflix inside viewers’ properties, however slightly to earn a spot alongside the purple big,” MoffettNathanson analysts stated in a analysis word.

Bloomberg Information that “Squid Video games” would add about $900 million to the corporate’s worth, citing inside paperwork.


* Analysts estimate Netflix’s third-quarter income to develop 16.14% to $7.48 billion when it stories outcomes on Oct. 19

* Earnings per share is estimated at $2.56

* As of Friday’s shut, its shares have gained about 16% thus far this yr


* Wall Avenue analysts are largely bullish, with 33 out of 45 ranking the inventory “purchase” or larger, whereas eight have a “maintain” ranking and 4 charge it as a “promote” or decrease.

* The median worth goal is $650 versus the present worth of $629.84

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Reporting by Eva Mathews and Subrat Patnaik in Bengaluru; Enhancing by Sweta Singh and Arun Koyyur


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