Netflix Could Hike Fees in U.S., Analysts Say, Even as It Tests Cheaper Plans Overseas

Netflix is gearing up to kick the tires on cheaper pricing plans in emerging markets outside the U.S. But at the same time, some on Wall Street think it has a growing amount of pricing power that could let it hike fees for American users. In a research…

Netflix is gearing up to kick the tires on cheaper pricing plans in emerging markets outside the U.S. But at the same time, some on Wall Street think it has a growing amount of pricing power that could let it hike fees for American users. In a research note Monday, Piper Jaffray analysts said Netflix […]

Asian Content to Benefit From Netflix as First Global TV Network, Says Reed Hastings

Netflix CEO Reed Hastings says the global streaming giant has become the world’s first “global television network.” “That is the beginning of very positive transformative force,” he said, and will help Asian content and ta…

Netflix CEO Reed Hastings says the global streaming giant has become the world’s first “global television network.” “That is the beginning of very positive transformative force,” he said, and will help Asian content and talent reach wider, new audiences. Hastings touted the advantages of global sharing, and personalization. “There has never been a global TV […]

Does Netflix Really Have a ‘Culture of Fear’ Problem?

Netflix is a company whose unsentimental culture of firing underperforming employees has “unsettle[d] the ranks,” according to the Wall Street Journal’s lengthy, detailed piece published Thursday. But as in-depth as it was, the Journa…

Netflix is a company whose unsentimental culture of firing underperforming employees has “unsettle[d] the ranks,” according to the Wall Street Journal’s lengthy, detailed piece published Thursday. But as in-depth as it was, the Journal’s 4,500-word story lacked some context. Namely: How happy are Netflix employees in general compared with other companies? And, more to the […]

Netflix Executive’s Ouster Over Racial Slur Detailed in New Report

Details surrounding the racial slur scandal that rocked Netflix in its uppermost executive ranks have come to light, thanks to an in-depth report from the Wall Street Journal about life inside the streaming monolith. Published Thursday, a hefty part of…

Details surrounding the racial slur scandal that rocked Netflix in its uppermost executive ranks have come to light, thanks to an in-depth report from the Wall Street Journal about life inside the streaming monolith. Published Thursday, a hefty part of the story focuses on ousted Netflix communications chief Jonathan Friedland, whose use of the N-word in […]

Netflix Smashes Q3 Earnings and Subscriber Projections, Stock Soars 14 Percent

Netflix surged past Wall Street subscriber projections when it posted its third-quarter earnings on Tuesday, sending its stock back towards $400 per share in the process.

The streaming giant posted $3.99 billion in revenue, matching analyst projections, while its earnings of 89 cents per share trumped analyst expectations of 68 cents per share. Revenue increased 34 percent year over year.

Most importantly for investors, the company added 6.96 million more subscribers during Q3, easily passing Netflix’s forecast of 5 million new customers. As Netflix edges toward a saturation point at home, with nearly 60 million domestic subscribers, it’s increasingly focused on pulling in international customers. That bet paid off during the third quarter, with Netflix adding 5.87 million new customers outside the U.S.

Also Read: Adam Sandler Promises New Jokes and New Songs in Netflix Special (Video)

The company pointed to “greater-than-expected acquisition globally, with strong growth broadly across all our markets including Asia,” as a driving force behind its subscriber growth in a note to investors.

And Netflix expects that growth to accelerate as 2018 comes to a close, with the company projecting it’ll add 9.4 million new customers in its Q4 guidance — comfortably eclipsing its quarterly record of 8.3 million new viewers. Analysts had anticipated Netflix would project 7.7 million new subscribers.

After an underwhelming second quarter report, Wall Street was clearly happy with what it saw from Netflix on Tuesday afternoon, with shares jumping 14 percent in after-hours trading to $393 per share. Netflix shares, after factoring in Tuesday’s after-hours burst, have increased 88 percent since the beginning of the year.

Also Read: Dylan McDermott Joins Ryan Murphy’s ‘The Politician’ at Netflix

As a sign of the times, Netflix touted its shows as “launching pad for a new generation of global stars” by highlighting the “explosive growth” of its stars’ followers on Instagram.

Netflix shows off the growth its stars have seen on Instagram

As usual, it was a busy quarter for the Los Gatos, California-based company. Netflix released new seasons of “Orange Is the New Black” and the Jason Bateman-led “Ozark.” It also added international hit “Black Panther” to its service — something analysts anticipated would fuel subscriber growth outside the U.S. Netflix also recently announced it was acquiring a New Mexico production facility as it looks to create more content in-house.

To pack its service with new shows, Netflix is spending big, with $8 billion committed to content in 2018. The company looked to assuage fears about its spending in its shareholder letter. “We recognize we are making huge cash investments in content, and we want to assure our investors that we have the same high confidence in the underlying economics as our cash investments in the past,” Netflix said. The company ended the quarter with $8.3 billion in long-term debt and $3.1 billion in cash.

Investors haven’t minded the spending, though, as long as the company keeps pulling in new subscribers. Netflix now has 137.1 million total subscribers.

Also Read: Condé Nast to Launch New Unscripted Series ‘Risky Biz’ on Facebook Watch (Exclusive)

The company will share a webcast of its earnings call at 6:00 p.m. ET on its YouTube investor relations page.

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Netflix Q3 Earnings Preview: Can ‘Ozark,’ ‘Black Panther’ Drive International Growth?

Netflix surged past Wall Street subscriber projections when it posted its third-quarter earnings on Tuesday, sending its stock back towards $400 per share in the process.

The streaming giant posted $3.99 billion in revenue, matching analyst projections, while its earnings of 89 cents per share trumped analyst expectations of 68 cents per share. Revenue increased 34 percent year over year.

Most importantly for investors, the company added 6.96 million more subscribers during Q3, easily passing Netflix’s forecast of 5 million new customers. As Netflix edges toward a saturation point at home, with nearly 60 million domestic subscribers, it’s increasingly focused on pulling in international customers. That bet paid off during the third quarter, with Netflix adding 5.87 million new customers outside the U.S.

The company pointed to “greater-than-expected acquisition globally, with strong growth broadly across all our markets including Asia,” as a driving force behind its subscriber growth in a note to investors.

And Netflix expects that growth to accelerate as 2018 comes to a close, with the company projecting it’ll add 9.4 million new customers in its Q4 guidance — comfortably eclipsing its quarterly record of 8.3 million new viewers. Analysts had anticipated Netflix would project 7.7 million new subscribers.

After an underwhelming second quarter report, Wall Street was clearly happy with what it saw from Netflix on Tuesday afternoon, with shares jumping 14 percent in after-hours trading to $393 per share. Netflix shares, after factoring in Tuesday’s after-hours burst, have increased 88 percent since the beginning of the year.

As a sign of the times, Netflix touted its shows as “launching pad for a new generation of global stars” by highlighting the “explosive growth” of its stars’ followers on Instagram.

Netflix shows off the growth its stars have seen on Instagram

As usual, it was a busy quarter for the Los Gatos, California-based company. Netflix released new seasons of “Orange Is the New Black” and the Jason Bateman-led “Ozark.” It also added international hit “Black Panther” to its service — something analysts anticipated would fuel subscriber growth outside the U.S. Netflix also recently announced it was acquiring a New Mexico production facility as it looks to create more content in-house.

To pack its service with new shows, Netflix is spending big, with $8 billion committed to content in 2018. The company looked to assuage fears about its spending in its shareholder letter. “We recognize we are making huge cash investments in content, and we want to assure our investors that we have the same high confidence in the underlying economics as our cash investments in the past,” Netflix said. The company ended the quarter with $8.3 billion in long-term debt and $3.1 billion in cash.

Investors haven’t minded the spending, though, as long as the company keeps pulling in new subscribers. Netflix now has 137.1 million total subscribers.

The company will share a webcast of its earnings call at 6:00 p.m. ET on its YouTube investor relations page.

Related stories from TheWrap:

Viacom Accuses Netflix of Poaching TV Executive in Lawsuit

'Chilling Adventures of Sabrina' Star Kiernan Shipka Teases Netflix's 'Next Level Dark' Reboot (Video)

Netflix Q3 Earnings Preview: Can 'Ozark,' 'Black Panther' Drive International Growth?

Netflix Q3 Earnings Preview: Can ‘Ozark,’ ‘Black Panther’ Drive International Growth?

Will Netflix bounce back?

The streaming giant is set to report its third-quarter financials on Tuesday, looking to rebound from an underwhelming second quarter where it missed both Wall Street and internal estimates for new subscribers.

It marked the first time since early 2017 that Netflix missed on subscriber estimates, with the Los Gatos, California-based company falling 1 million new streamers short of the 6.2 million it had projected. The quarter perfectly summarized where Netflix stands as a public company right now; despite slightly beating earnings and revenue forecasts, Netflix shares have taken since taken a beating, dropping 17 percent since July.

Netflix reported a rare miss on subscriber growth last quarter (via Netflix)

Also Read: Dylan McDermott Joins Ryan Murphy’s ‘The Politician’ at Netflix

Of course, “bounce back” might be a bit dramatic. Netflix, even after showing it isn’t immune to an underwhelming quarter, has 130 million total subscribers. It’s trading at $336 per share — 62 percent higher than where it started the year — even after a healthy dip. Still, the company rises and falls largely on a single metric, something analysts are well aware of.

“We worry that another second consecutive subscriber miss could impact the narrative about the pace of subscriber growth moving forward,” Evercore analyst Anthony DiClemente recently said in a note to clients that was shared with TheWrap.

DiClemente is optimistic that won’t be the case, though, thanks to a strong slate of new content. Netflix released new seasons of “Ozark” and “Orange is the New Black” during the quarter, and added global hit “Black Panther” to the fold.

Also Read: Dwayne Johnson, Jake Kasdan to Reunite on Netflix’s ‘John Henry and The Statesmen’

As Netflix edges towards a saturation point in the U.S., with 57 million domestic subscribers, the company is increasingly looking for new customers outside the States. DiClemente, using data from analytics firm SensorTower, believes the fresh content has spurred “robust international subscriber growth” during Q3.

“In total, the Netflix app was downloaded more than 40 [million] times from the App Store and Google Play Store in the [third quarter],” DiClemente wrote, marking a 48.5 percent year-over-year growth. “Download activity experienced the most rapid growth in five quarters.”

That trend was especially clear in India. CEO Reed Hastings pointed to the country as a critical market earlier this year, saying greater internet access will drive its “next 100 million” subscribers. Netflix downloads increased 500 percent year-over-year in India, according to Evercore’s data, hitting nearly 5 million downloads for the quarter.

Also Read: Shonda Rhimes, Matt Reeves to Develop Blake Crouch’s New Book for Netflix Film, TV Universe

Netflix has seen its popularity soar in India, according to data collected by Evercore

Goldman Sachs analyst Heath Terry made a similar observation in a Monday note to clients that was shared with TheWrap. He said that the “launch of local originals such as ‘Sacred Games’ and ‘Ghoul’ in India accompanied with significant marketing and local partnerships are representative of the potential that these earlier stage, mobile first markets have to drive international subscriber growth.”

Terry, despite cutting his year-long price target on Netflix from $470 to $430, remains bullish on Netflix, projecting the company to add 4.7 million international subscribers, along with another 850,000 in the U.S, eclipsing Netflix’s own forecast of 5 million new users.

From a financial standpoint, Netflix is expected to report earnings of 68 cents per share on $4 billion in revenue, according to Yahoo estimates. The company is spending big on new shows, with $8 billion going towards content in 2018. That figure will increase in 2019. And it’s expected to burn more than $3 billion by the end of the year. But for most investors and analysts, those numbers are ancillary. If Netflix can top 5 million new subscribers on Tuesday, it’s all but guaranteed to enjoy a Wall Street boost. For that to happen, it’s leaning on “Black Panther” and its original content to drive growth outside the U.S.

Related stories from TheWrap:

‘Dracula’ Mini-Series From ‘Sherlock’ Duo Coming to Netflix, BBC One

5 Takeaways From TheGrill 2018: The Netflix Arms Race, MoviePass’ Future and More

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Will Netflix bounce back?

The streaming giant is set to report its third-quarter financials on Tuesday, looking to rebound from an underwhelming second quarter where it missed both Wall Street and internal estimates for new subscribers.

It marked the first time since early 2017 that Netflix missed on subscriber estimates, with the Los Gatos, California-based company falling 1 million new streamers short of the 6.2 million it had projected. The quarter perfectly summarized where Netflix stands as a public company right now; despite slightly beating earnings and revenue forecasts, Netflix shares have taken since taken a beating, dropping 17 percent since July.

Netflix reported a rare miss on subscriber growth last quarter (via Netflix)

Of course, “bounce back” might be a bit dramatic. Netflix, even after showing it isn’t immune to an underwhelming quarter, has 130 million total subscribers. It’s trading at $336 per share — 62 percent higher than where it started the year — even after a healthy dip. Still, the company rises and falls largely on a single metric, something analysts are well aware of.

“We worry that another second consecutive subscriber miss could impact the narrative about the pace of subscriber growth moving forward,” Evercore analyst Anthony DiClemente recently said in a note to clients that was shared with TheWrap.

DiClemente is optimistic that won’t be the case, though, thanks to a strong slate of new content. Netflix released new seasons of “Ozark” and “Orange is the New Black” during the quarter, and added global hit “Black Panther” to the fold.

As Netflix edges towards a saturation point in the U.S., with 57 million domestic subscribers, the company is increasingly looking for new customers outside the States. DiClemente, using data from analytics firm SensorTower, believes the fresh content has spurred “robust international subscriber growth” during Q3.

“In total, the Netflix app was downloaded more than 40 [million] times from the App Store and Google Play Store in the [third quarter],” DiClemente wrote, marking a 48.5 percent year-over-year growth. “Download activity experienced the most rapid growth in five quarters.”

That trend was especially clear in India. CEO Reed Hastings pointed to the country as a critical market earlier this year, saying greater internet access will drive its “next 100 million” subscribers. Netflix downloads increased 500 percent year-over-year in India, according to Evercore’s data, hitting nearly 5 million downloads for the quarter.

Netflix has seen its popularity soar in India, according to data collected by Evercore

Goldman Sachs analyst Heath Terry made a similar observation in a Monday note to clients that was shared with TheWrap. He said that the “launch of local originals such as ‘Sacred Games’ and ‘Ghoul’ in India accompanied with significant marketing and local partnerships are representative of the potential that these earlier stage, mobile first markets have to drive international subscriber growth.”

Terry, despite cutting his year-long price target on Netflix from $470 to $430, remains bullish on Netflix, projecting the company to add 4.7 million international subscribers, along with another 850,000 in the U.S, eclipsing Netflix’s own forecast of 5 million new users.

From a financial standpoint, Netflix is expected to report earnings of 68 cents per share on $4 billion in revenue, according to Yahoo estimates. The company is spending big on new shows, with $8 billion going towards content in 2018. That figure will increase in 2019. And it’s expected to burn more than $3 billion by the end of the year. But for most investors and analysts, those numbers are ancillary. If Netflix can top 5 million new subscribers on Tuesday, it’s all but guaranteed to enjoy a Wall Street boost. For that to happen, it’s leaning on “Black Panther” and its original content to drive growth outside the U.S.

Related stories from TheWrap:

'Dracula' Mini-Series From 'Sherlock' Duo Coming to Netflix, BBC One

5 Takeaways From TheGrill 2018: The Netflix Arms Race, MoviePass' Future and More

Netflix to Develop Series, Films Based on CS Lewis' 'The Chronicles of Narnia'

Netflix to Launch New European Office in Paris

Netflix is expanding its international footprint with the launch of a fully staffed Paris bureau, its third European outpost after Amsterdam and London. The Paris office will kick off with about 20 employees, some of whom are already working for Netfli…

Netflix is expanding its international footprint with the launch of a fully staffed Paris bureau, its third European outpost after Amsterdam and London. The Paris office will kick off with about 20 employees, some of whom are already working for Netflix in Amsterdam, and others who will be new hires. The French bureau won’t be […]

Netflix Names Axel Springer CEO Mathias Döpfner To Board Of Directors

Netflix said Axel Springer Chairman and CEO Mathias Döpfner will join its board of directors, an appointment that reflects the streaming service’s global focus.
Based in Berlin, Döpfner leads Europe’s leading digital publishing house, with brands…

Netflix said Axel Springer Chairman and CEO Mathias Döpfner will join its board of directors, an appointment that reflects the streaming service’s global focus. Based in Berlin, Döpfner leads Europe's leading digital publishing house, with brands including Bild, Die Welt, Business Insider and Politico Europe. "We are very pleased to welcome Mathias to the Netflix board," "His leadership at the vanguard of both European business and digital media brings us invaluable…

Netflix Hires Head Of “Inclusion Strategy” Following Executive Ouster Over Racially Insensitive Remarks

Netflix has hired Vernā Myers as vice president of inclusion strategy, a newly created role to help promote cultural diversity, inclusion and equity into all aspects of Netflix’s operations worldwide.
The hiring follows the ouster of Netflix’s ch…

Netflix has hired Vernā Myers as vice president of inclusion strategy, a newly created role to help promote cultural diversity, inclusion and equity into all aspects of Netflix's operations worldwide. The hiring follows the ouster of Netflix’s chief spokesman, Jonathan Friedland, over racially insensitive remarks. At the time, the company said it had hired an executive to oversee its diversity and inclusion efforts after conducting a months-long search. For the past two…

Ted Sarandos on How Netflix Predicted the Future of TV

When Ted Sarandos first met with Netflix founder Reed Hastings about working for his start-up online video-rental service in 1999, Hastings laid out his vision for the new recruit. Hastings saw his company’s future as providing streaming video delivere…

When Ted Sarandos first met with Netflix founder Reed Hastings about working for his start-up online video-rental service in 1999, Hastings laid out his vision for the new recruit. Hastings saw his company’s future as providing streaming video delivered to subscribers via the internet, even though Netflix at the time made its money by mailing […]

Netflix Kills User Reviews

Your lengthy, spot-on review of the latest “Orange Is the New Black” season is now digital history. On Friday, Netflix ended customer reviews of its shows.

The streaming giant started notifying frequent reviewers it would axe the desktop-only feature last month. Netflix first blocked users from submitting show evaluations on July 30, and has now wiped all existing fan recaps, too. This brings an end to a feature that has been part of the Netflix experience since the company launched in 1998.

Netflix says it decided to remove the feature due to “declining usage,” a company spokesperson told TheWrap

Also Read: How Netflix’s Hit ‘Queer Eye’ Reboot Found Its New Fab Five

This isn’t the first time Netflix has tinkered with its user rating system. Prior to the announcement, Netflix had already made reviews unavailable on mobile devices and removed customer bylines from them on the desktop site. And the company ditched 5-star grading last year in favor of the current “thumbs up/thumbs down” system. Netflix’s system now analyzes viewing habits and a user’s “thumbs up/thumbs down” selections to curate show and film recommendations.

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Your lengthy, spot-on review of the latest “Orange Is the New Black” season is now digital history. On Friday, Netflix ended customer reviews of its shows.

The streaming giant started notifying frequent reviewers it would axe the desktop-only feature last month. Netflix first blocked users from submitting show evaluations on July 30, and has now wiped all existing fan recaps, too. This brings an end to a feature that has been part of the Netflix experience since the company launched in 1998.

Netflix says it decided to remove the feature due to “declining usage,” a company spokesperson told TheWrap

This isn’t the first time Netflix has tinkered with its user rating system. Prior to the announcement, Netflix had already made reviews unavailable on mobile devices and removed customer bylines from them on the desktop site. And the company ditched 5-star grading last year in favor of the current “thumbs up/thumbs down” system. Netflix’s system now analyzes viewing habits and a user’s “thumbs up/thumbs down” selections to curate show and film recommendations.

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Renee Zellweger Sets First Major TV Role as Lead in Netflix Series 'What/If'

'Black-ish' Creator Kenya Barris Inks Multiyear Overall Deal With Netflix

Netflix Renews 'Fastest Car' for Season 2, Greenlights 2 More Motor Series

PTC Calls Netflix’s ‘Desire’ Movie “Child Porn”, Asks Reed Hastings To Remove It

The Parents Television Counsel is calling on Netflix to remove the controversial Argentinian film Desire from the streaming service, saying the company is placing profits ahead of corporate responsibility in distributing what it considers child porn.
T…

The Parents Television Counsel is calling on Netflix to remove the controversial Argentinian film Desire from the streaming service, saying the company is placing profits ahead of corporate responsibility in distributing what it considers child porn. The film depicts a 9-year-old girl masturbating for the first time and experiencing an orgasm while watching a John Ford cowboy film with a young friend. The scene, in which the girls imitates the cowboy by sitting on her…

Netflix CFO David Wells to Step Down

David Wells, the CFO of Netflix, is set to depart after 14 years with the company. He’s been in his position since 2010.

Wells will stay put until Netflix names his successor, a search which will include consideration of both internal and external candidates, the streaming service said on Monday.

“It’s been 14 wonderful years at Netflix, and I’m very proud of everything we’ve accomplished,” Wells said in a statement. “After discussing my desire to make a change with Reed, we agreed that with Netflix’s strong financial position and exciting growth plans, this is the right time for us to help identify the next financial leader for the company.”

Also Read: 13 TCA Takeaways: ‘AHS’ Deets, Why Kenya Barris Bailed on ABC, and Just What Is Going on at CBS?

“David has been a valuable partner to Netflix and to me,” Netflix CEO Reed Hastings added. “He skillfully managed our finances during a phase of dramatic growth that has allowed us to create and bring amazing entertainment to our members all over the world while also delivering outstanding returns to our investors.”

With Wells in charge of the finances, shares of Netflix have skyrocketed. The stock started 2010 in the single digits, dollar-wise — this morning, it opened at just under $340 per share. We’d say that qualifies as a “strong financial position,” which is how Wells put it above.

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David Wells, the CFO of Netflix, is set to depart after 14 years with the company. He’s been in his position since 2010.

Wells will stay put until Netflix names his successor, a search which will include consideration of both internal and external candidates, the streaming service said on Monday.

“It’s been 14 wonderful years at Netflix, and I’m very proud of everything we’ve accomplished,” Wells said in a statement. “After discussing my desire to make a change with Reed, we agreed that with Netflix’s strong financial position and exciting growth plans, this is the right time for us to help identify the next financial leader for the company.”

“David has been a valuable partner to Netflix and to me,” Netflix CEO Reed Hastings added. “He skillfully managed our finances during a phase of dramatic growth that has allowed us to create and bring amazing entertainment to our members all over the world while also delivering outstanding returns to our investors.”

With Wells in charge of the finances, shares of Netflix have skyrocketed. The stock started 2010 in the single digits, dollar-wise — this morning, it opened at just under $340 per share. We’d say that qualifies as a “strong financial position,” which is how Wells put it above.

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Netflix Orders Paul Rudd Comedy 'Living With Yourself'

Netflix Renews 'Last Chance U'; Season 4 Will Return to Indy

'House of Cards': Netflix Sets Premiere Date for Sixth and Final Season

Netflix ‘Would Be Happy’ to Do More ‘Master of None’ – ‘When Aziz Is Ready’

If Aziz Ansari is down for another season of “Master of None,” so is Netflix.

That’s according to Netflix VP of Original Content Cindy Holland, who said the streaming giant has “certainly given some thought” to a third season of the Emmy-winning comedy.

“We would be happy to make another season of ‘Master of None’ when Aziz is ready,” Holland said while speaking at the Television Critics Association press tour on Sunday.

Also Read: Emma Stone, Jonah Hill Limited Series ‘Maniac’ Sets Netflix Release Date

The exec was responding to a question on whether Netflix would pick up another season of the show with Ansari, after a woman wrote last year she “felt violated” after going on a date with the comedian. Ansari said he was “surprised and concerned” and “took her words to heart” in response to the article.

“I continue to support the movement that is happening in our culture. It is necessary and long overdue,” added Ansari.

Aziz created, wrote, directed and starred in the comedy that netted him and co-writer Lena Waithe an Emmy last year for writing.

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If Aziz Ansari is down for another season of “Master of None,” so is Netflix.

That’s according to Netflix VP of Original Content Cindy Holland, who said the streaming giant has “certainly given some thought” to a third season of the Emmy-winning comedy.

“We would be happy to make another season of ‘Master of None’ when Aziz is ready,” Holland said while speaking at the Television Critics Association press tour on Sunday.

The exec was responding to a question on whether Netflix would pick up another season of the show with Ansari, after a woman wrote last year she “felt violated” after going on a date with the comedian. Ansari said he was “surprised and concerned” and “took her words to heart” in response to the article.

“I continue to support the movement that is happening in our culture. It is necessary and long overdue,” added Ansari.

Aziz created, wrote, directed and starred in the comedy that netted him and co-writer Lena Waithe an Emmy last year for writing.

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Netflix Orders Dead-DJ Drama 'White Lines' From 'The Crown' Producers

Emma Stone, Jonah Hill Limited Series 'Maniac' Sets Netflix Release Date

Netflix Renews 'Altered Carbon' for Season 2 With Anthony Mackie as New Lead

Anxiety in Hollywood Over Firings, Tweets and Crying in the Office

At a dinner party in Hollywood this weekend, for once the talk was not about Trump. Instead it was about the pervasive anxiety within the entertainment industry over the prevailing rules for conduct.

Since Harvey Weinstein and the #MeToo movement last year, executives at all levels have been telling me that they don’t know where the lines are anymore. That they’re afraid to hire women, especially attractive women, for fear of perceived misconduct. That everyone is now subject to sensitivity training – sure, why not – but that there are still plenty of people who have misbehaved and not paid any price.

The new rules? No hugging, even when someone is upset. No touching, that’s pretty much always over the line. And be careful of objectionable language when assistants are listening in on business calls.

Also Read: Hollywood’s Zero-Tolerance on Racism, Sexism Is the New Normal

One executive told me he was chided by the Human Resources department of his company when he told his assistant to stop crying after he criticized her for a mistake. “You’re not allowed to tell an assistant not to cry in the office?” he recounted, dumbfounded.

The sudden firing of Paramount TV chief Amy Powell on Thursday particularly rankled. Powell, two people pointed out, was publicly pilloried by Paramount CEO Jim Gianopulos for allegedly making reference to a tweet by African-America showrunner Tracy Oliver, remarking about anger specific to black women while on a conference call discussing the tweet. Powell has denied the comment.

But after more than a decade at Paramount, she may never work in the entertainment industry again. Who will hire someone labeled a racist?

“I personally think Amy Powell was treated unfairly,” said one leading agent who knows her. “She was in adamant denial, so you fired her? I would have said, ‘We’re going to suspend you for a month.’ Why fire someone?”

The CEO of an independent film company was incensed by that incident, in addition to Disney’s firing of James Gunn over past tweets, and Netflix CEO Reed Hastings publicly disavowing the “unacceptably low racial awareness” of the company’s chief comms officer Jonathan Friedland, who was fired in June. The firings virtually guarantee these people will not work again, he said.

Also Read: Inside the Firing of Paramount TV President Amy Powell

“I can’t name a single executive who hasn’t said things worse than that,” said the CEO, referring to Powell’s remarks. “Dawn Steel set the standard. You won’t believe the things she said.” (Steel was one of the first women to lead a Hollywood studio, Columbia.)

He continued: “I’d have an investigation to try to get to the truth of the matter. If she said it I would say, ‘You need to admit you said it.’ Issue an apology and suspend her without pay for two months. I’d fire her for lying to me. Not for making the comment.”

With much of the industry down in Comic-Con this weekend, plenty of people spoke up on behalf of James Gunn, who was fired by Disney after tweets making jokes about pedophilia were resurfaced. Gunn has made oblique references to his own possible experience with abuse, as when he wrote in October: “Sexual predation is rife in Hollywood. But it’s also rife EVERYWHERE,” he said. “They are movie stars and network heads and world famous bloggers – but they are also fast food restaurant managers and used car salesmen and, as I learned as a child (and tried to speak out and was shut down), priests.”

Gunn’s future is unclear, and the solution for companies like Disney isn’t simple. It certainly seems that a new standard is being applied not just to conduct but to speech, and that both creatives and executives can now find their careers wiped out in the space of a tweet, or a careless aside.

Are the current expectations unrealistic in the course of human interaction?

As the agent put it, “This is – you’re mad one day and the next day you regret it. Everyone says something stupid on occasion.”

At a dinner party in Hollywood this weekend, for once the talk was not about Trump. Instead it was about the pervasive anxiety within the entertainment industry over the prevailing rules for conduct.

Since Harvey Weinstein and the #MeToo movement last year, executives at all levels have been telling me that they don’t know where the lines are anymore. That they’re afraid to hire women, especially attractive women, for fear of perceived misconduct. That everyone is now subject to sensitivity training – sure, why not – but that there are still plenty of people who have misbehaved and not paid any price.

The new rules? No hugging, even when someone is upset. No touching, that’s pretty much always over the line. And be careful of objectionable language when assistants are listening in on business calls.

One executive told me he was chided by the Human Resources department of his company when he told his assistant to stop crying after he criticized her for a mistake. “You’re not allowed to tell an assistant not to cry in the office?” he recounted, dumbfounded.

The sudden firing of Paramount TV chief Amy Powell on Thursday particularly rankled. Powell, two people pointed out, was publicly pilloried by Paramount CEO Jim Gianopulos for allegedly making reference to a tweet by African-America showrunner Tracy Oliver, remarking about anger specific to black women while on a conference call discussing the tweet. Powell has denied the comment.

But after more than a decade at Paramount, she may never work in the entertainment industry again. Who will hire someone labeled a racist?

“I personally think Amy Powell was treated unfairly,” said one leading agent who knows her. “She was in adamant denial, so you fired her? I would have said, ‘We’re going to suspend you for a month.’ Why fire someone?”

The CEO of an independent film company was incensed by that incident, in addition to Disney’s firing of James Gunn over past tweets, and Netflix CEO Reed Hastings publicly disavowing the “unacceptably low racial awareness” of the company’s chief comms officer Jonathan Friedland, who was fired in June. The firings virtually guarantee these people will not work again, he said.

“I can’t name a single executive who hasn’t said things worse than that,” said the CEO, referring to Powell’s remarks. “Dawn Steel set the standard. You won’t believe the things she said.” (Steel was one of the first women to lead a Hollywood studio, Columbia.)

He continued: “I’d have an investigation to try to get to the truth of the matter. If she said it I would say, ‘You need to admit you said it.’ Issue an apology and suspend her without pay for two months. I’d fire her for lying to me. Not for making the comment.”

With much of the industry down in Comic-Con this weekend, plenty of people spoke up on behalf of James Gunn, who was fired by Disney after tweets making jokes about pedophilia were resurfaced. Gunn has made oblique references to his own possible experience with abuse, as when he wrote in October: “Sexual predation is rife in Hollywood. But it’s also rife EVERYWHERE,” he said. “They are movie stars and network heads and world famous bloggers – but they are also fast food restaurant managers and used car salesmen and, as I learned as a child (and tried to speak out and was shut down), priests.”

Gunn’s future is unclear, and the solution for companies like Disney isn’t simple. It certainly seems that a new standard is being applied not just to conduct but to speech, and that both creatives and executives can now find their careers wiped out in the space of a tweet, or a careless aside.

Are the current expectations unrealistic in the course of human interaction?

As the agent put it, “This is – you’re mad one day and the next day you regret it. Everyone says something stupid on occasion.”

Netflix Stock Dives 10 Percent One Day After Underwhelming Q2 Subscriber Growth

Netflix’s big year took a sudden downward turn on Tuesday, with shares dropping more than 10 percent in early morning trading, one day after the company posted disappointing Q2 subscriber growth.

Netflix shares were down 13 percent as markets opened, but started to rally a bit an hour into trading, hitting $366.22 a share — down about 8.5 percent from its previous close.

Netflix’s stock was hit hard after it posted its Q2 earnings (via Google)

Also Read: ‘Chilling Adventures of Sabrina’ First Teaser: Let Salem Hypnotize You Into Watching (Video)

Wall Street is reacting to the Los Gatos, California-based company reporting it added 5.2 million subscribers during the second quarter, coming in about 1 million subscribers short of Netflix’s own estimates. Netflix also shared lower guidance for third quarter subscriber growth than expected, with the company aiming for 5 million new customers, while analysts had projected about 6 million.

CEO Reed Hastings said, “we’ve seen this movie” when it comes to missed subscriber targets on the company’s earnings call. It was the first time Netflix had missed its subscriber targets since Q1 2017. Nevertheless, Hastings said the company’s outlook has “never been stronger,” and pointed to setting “year-over-year records” for viewing hours.

Netflix narrowly missed on analyst estimates on revenue, bringing in $3.9 billion for the quarter, but beat expectations with earnings of 85 cents per share.

Also Read: ‘Orange Is the New Black’ Season 6 Trailer: ‘Goooooood Morning, Litchfield Max!’ (Video)

Even with Tuesday’s dip, the streaming heavyweight has had a strong 2018, with shares up 90 percent since the start of the year. Last week, Netflix, spearheaded by “The Crown” and “Stranger Things,” broke HBO’s 17-year streak of being the most nominated network for the Emmy Awards.

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Netflix Misses Big on Q2 Subscriber Growth, Stock Drops 11 Percent

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Netflix Earnings Preview: Subscriber Growth or Bust

Netflix’s big year took a sudden downward turn on Tuesday, with shares dropping more than 10 percent in early morning trading, one day after the company posted disappointing Q2 subscriber growth.

Netflix shares were down 13 percent as markets opened, but started to rally a bit an hour into trading, hitting $366.22 a share — down about 8.5 percent from its previous close.

Netflix’s stock was hit hard after it posted its Q2 earnings (via Google)

Wall Street is reacting to the Los Gatos, California-based company reporting it added 5.2 million subscribers during the second quarter, coming in about 1 million subscribers short of Netflix’s own estimates. Netflix also shared lower guidance for third quarter subscriber growth than expected, with the company aiming for 5 million new customers, while analysts had projected about 6 million.

CEO Reed Hastings said, “we’ve seen this movie” when it comes to missed subscriber targets on the company’s earnings call. It was the first time Netflix had missed its subscriber targets since Q1 2017. Nevertheless, Hastings said the company’s outlook has “never been stronger,” and pointed to setting “year-over-year records” for viewing hours.

Netflix narrowly missed on analyst estimates on revenue, bringing in $3.9 billion for the quarter, but beat expectations with earnings of 85 cents per share.

Even with Tuesday’s dip, the streaming heavyweight has had a strong 2018, with shares up 90 percent since the start of the year. Last week, Netflix, spearheaded by “The Crown” and “Stranger Things,” broke HBO’s 17-year streak of being the most nominated network for the Emmy Awards.

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Netflix Brass Spins Q2 Miss: “Fundamentals Have Never Been Stronger”

In their quarterly video conference moderated by a single Wall Street analyst — in this case, Todd Juenger of Sanford Bernstein — Netflix execs shrugged off the company’s disappointing second-quarter results.
“The fundamentals h…

In their quarterly video conference moderated by a single Wall Street analyst — in this case, Todd Juenger of Sanford Bernstein — Netflix execs shrugged off the company’s disappointing second-quarter results. “The fundamentals have never been stronger,” CEO Reed Hastings said, citing record levels of viewing and positive trends in many global territories. “We're feeling very strongly about the business.” He added that the dip in the second quarter was unrelated to price…

Netflix CEO Says U.S. Rollback of Net Neutrality Rules Is No Big Deal

Netflix chief Reed Hastings — who has been an ardent and vocal supporter of net neutrality rules to ensure service providers don’t discriminate against internet content companies — said the U.S. reversal on net neutrality won’t …

Netflix chief Reed Hastings — who has been an ardent and vocal supporter of net neutrality rules to ensure service providers don’t discriminate against internet content companies — said the U.S. reversal on net neutrality won’t have an impact on the streamer’s business. “Around the world, net neutrality has won as a consumer expectation,” Hastings […]

Netflix Misses Big on Q2 Subscriber Growth, Stock Drops 11 Percent

Netflix missed its own estimates — as well as Wall Street’s projections — on subscriber growth by 1 million new accounts, when the streaming giant reported its second quarter financial results on Monday afternoon, sending its stock price tumbling more than 10 percent in the process.

For the three months ending on June 30, Netflix reported revenue of $3.9 billion and earnings of 85 cents a share —  touching analyst estimates of $3.94 billion in revenue and beating projections of $0.79 per share. The Los Gatos, California-based company increased streaming revenue 43 percent year-over-year.

But subscriber growth is what Wall Street cares most about. Netflix reported 5.2 million new subscribers — coming in well short of its projected 6.2 million new customers. Coming off its best back-to-back quarters for total subscriber growth in its history, Netflix fell short of subscriber estimates for the first time since Q1 2017.

Also Read: Netflix Earnings Preview: Subscriber Growth or Bust

Netflix fell 1M subscribers short of its Q2 estimate (via Netflix)

Shares of Netflix were down 14 percent in after-hours trading to $344 per share, immediately after the company reported its earnings.

With more than 56 million domestic subscribers, or about 1 out of every 6 people in the States with an account, Netflix had already been heading towards a saturation point at home. The company added 700,000 domestic subscribers during Q2, along with 4.5 million abroad, missing company and analyst estimates on both fronts. Netflix now has 130 million total subscribers, with more than half coming from outside the U.S.

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Netflix also shared guidance of 5 million new subscriptions for Q3, coming in below analyst estimates of about 6 million.

Netflix raised $1.9 billion in debt during the quarter, and now holds a long-term debt balance of $8.4 billion. The debt is helping finance its breakneck content output — which COO Ted Sarandos has budgeted at about $8 billion for 2018, while The Economist recently estimated it could balloon to $13 billion.

Netflix said it’s “making good progress with our original feature films,” in a letter to its shareholders. Two of its originals — “Set It Up,” starring Lucy Liu and Taye Diggs, and “The Kissing Booth” — have been “watched and loved by tens of millions of Netflix members,” said the company, which is usually reticent to share viewership data.

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And if you’ve noticed more billboards for “Stranger Things” and “The Crown” of late — two shows that helped make Netflix the most-nominated network for the Emmys last week — there’s a good reason. Netflix’s marketing budget increased 92 percent since the same time last year, hitting $526 million for the quarter.

Netflix will post its prerecorded earnings call at 6:00 pm ET.

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Netflix missed its own estimates — as well as Wall Street’s projections — on subscriber growth by 1 million new accounts, when the streaming giant reported its second quarter financial results on Monday afternoon, sending its stock price tumbling more than 10 percent in the process.

For the three months ending on June 30, Netflix reported revenue of $3.9 billion and earnings of 85 cents a share —  touching analyst estimates of $3.94 billion in revenue and beating projections of $0.79 per share. The Los Gatos, California-based company increased streaming revenue 43 percent year-over-year.

But subscriber growth is what Wall Street cares most about. Netflix reported 5.2 million new subscribers — coming in well short of its projected 6.2 million new customers. Coming off its best back-to-back quarters for total subscriber growth in its history, Netflix fell short of subscriber estimates for the first time since Q1 2017.

Netflix fell 1M subscribers short of its Q2 estimate (via Netflix)

Shares of Netflix were down 14 percent in after-hours trading to $344 per share, immediately after the company reported its earnings.

With more than 56 million domestic subscribers, or about 1 out of every 6 people in the States with an account, Netflix had already been heading towards a saturation point at home. The company added 700,000 domestic subscribers during Q2, along with 4.5 million abroad, missing company and analyst estimates on both fronts. Netflix now has 130 million total subscribers, with more than half coming from outside the U.S.

Netflix also shared guidance of 5 million new subscriptions for Q3, coming in below analyst estimates of about 6 million.

Netflix raised $1.9 billion in debt during the quarter, and now holds a long-term debt balance of $8.4 billion. The debt is helping finance its breakneck content output — which COO Ted Sarandos has budgeted at about $8 billion for 2018, while The Economist recently estimated it could balloon to $13 billion.

Netflix said it’s “making good progress with our original feature films,” in a letter to its shareholders. Two of its originals — “Set It Up,” starring Lucy Liu and Taye Diggs, and “The Kissing Booth” — have been “watched and loved by tens of millions of Netflix members,” said the company, which is usually reticent to share viewership data.

And if you’ve noticed more billboards for “Stranger Things” and “The Crown” of late — two shows that helped make Netflix the most-nominated network for the Emmys last week — there’s a good reason. Netflix’s marketing budget increased 92 percent since the same time last year, hitting $526 million for the quarter.

Netflix will post its prerecorded earnings call at 6:00 pm ET.

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Netflix Earnings Preview: Subscriber Growth or Bust

With Netflix’s second-quarter earnings releasing on Monday afternoon, Wall Street will have its eyes once again fixated on — what else? — subscriber growth.

Netflix has been on a strong run, posting its best total subscriber growth in back-to-back quarters. As Netflix has surpassed 125 million accounts, its stock price has soared in the process — increasing 105 percent since the start of the year to over $395 a share.

Netflix has projected 6.2 million new customers during Q2, with 5 million coming internationally.

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Shares of NFLX have more than doubled in 2018 (via Yahoo Finance)

“Netflix is very good at being conservative with guidance each quarter,” Tom Harrington, senior research analyst with Enders Analysis, told TheWrap. “They pass guidance each quarter in terms of subscriber adds, and every time they do that, the stock value goes up.”

The symbiotic relationship between subscribers and stock price has served Netflix well. However, Netflix is also edging towards minimal growth in the States, with nearly 57 million domestic subscribers — or about one account for every six Americans — already using the service. Linking its Wall Street success to subscriber growth puts Netflix at risk of stumbling unless Netflix continues to put up strong international numbers.

Also Read: Netflix Snaps HBO’s 17-Year Emmys Streak

“Tying the value of the company to subscriber adds, it’s going to get harder for them to continually do that because they’re reaching a saturation in the States —  which is why they’re doubling down internationally,” added Nichols.

The good news for Netflix shareholders, of course, is that it’s connecting with international fans so far. More than half of Netflix’s 125 million subscribers come from outside the U.S.

“We’re seeing enormous mass adaptation on the international markets, and we’re seeing this because the shows are so good in each market they’re addressing,” Ross Gerber, president and CEO of Gerber Kawasaki Wealth and Investment Management, told TheWrap.

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Many of Netflix’s best-known shows are produced internationally, with “Fauda” from Israel, “Dark” from Germany, and “Narcos” from Colombia to name a few. These shows, according to Gerber, serve a dual purpose in that they appeal to audiences both at home while keeping Netflix’s “global community” satiated as well.

The second season of “Fauda” debuted in May

In the quarters ahead, Netflix will rise and fall on its international gains. CEO Reed Hastings is aware of this and has pointed to India and its population of 1.3 billion in particular as a key market. Compared to its domestic saturation, there is still plenty of room for growth: Netflix’s 68 million international subscribers comes out to about 1 in every 106 people with an account outside the U.S.

Also Read: Netflix’s Marijuana Show ‘Cooking on High’ Draws Jeers: ‘Dumb and Makes No Sense’

To keep growing, Netflix is spending big. Ted Sarandos, the company’s chief content officer, has said the company is spending about $8 billion on content this year — while The Economist recently projected that the figure could balloon to $13 billion.

“Netflix’s business strategy is to bulk up quick, get big now, and keep spending on content once they reach a certain equilibrium,” said Gerber. “They’re kind of in a race to get ahead of everyone else — and they’ve proven they’re ahead of everyone else. I think they have a couple more years of heavy content spend to solidify their position internationally as the global player.”

It’ll be worth keeping an eye on how much debt Netflix is carrying to help fund its expansion. Netflix raised $1.9 billion in debt in April to fund content and “strategic transactions,” after it had reported $6.5 billion in debt obligations during its first-quarter earnings. But investors have shown a willingness to look at Netflix’s debt as a forgivable sin, as long as it continues to rack up subscribers.

Also Read: Salma Hayek-Produced Mexican Series ‘Monarca’ Picked Up by Netflix

This could soon become more difficult. Netflix’s growth has been aided by offering releases from major, internationally-proven studios like Disney. But the Mouse House and other Hollywood stalwarts have since realized they’ve been “subsidizing their own destruction,” as Harrington put it, by allowing Netflix to ride its content to the front of the international streaming race.

Disney will be pulling its shows from Netflix next year as it prepares to launch its own streaming service. Amazon isn’t on Netflix’s level yet, but always lingers as a formidable foe. And Apple is readying its content strike, armed with more than 1 billion devices worldwide it can offer its shows on (think of it like the U2 album that automatically downloaded to your iPhone, but with something you might actually enjoy).

Those are battles down the line for Netflix, though. And if its able to keep churning out top-notch programming outside the U.S., Gerber said he could see Netflix pushing to 200-250 million subscribers in the next five years. That push starts Monday afternoon when we’ll see how much new territory Netflix has gobbled up since April.

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With Netflix’s second-quarter earnings releasing on Monday afternoon, Wall Street will have its eyes once again fixated on — what else? — subscriber growth.

Netflix has been on a strong run, posting its best total subscriber growth in back-to-back quarters. As Netflix has surpassed 125 million accounts, its stock price has soared in the process — increasing 105 percent since the start of the year to over $395 a share.

Netflix has projected 6.2 million new customers during Q2, with 5 million coming internationally.

Shares of NFLX have more than doubled in 2018 (via Yahoo Finance)

“Netflix is very good at being conservative with guidance each quarter,” Tom Harrington, senior research analyst with Enders Analysis, told TheWrap. “They pass guidance each quarter in terms of subscriber adds, and every time they do that, the stock value goes up.”

The symbiotic relationship between subscribers and stock price has served Netflix well. However, Netflix is also edging towards minimal growth in the States, with nearly 57 million domestic subscribers — or about one account for every six Americans — already using the service. Linking its Wall Street success to subscriber growth puts Netflix at risk of stumbling unless Netflix continues to put up strong international numbers.

“Tying the value of the company to subscriber adds, it’s going to get harder for them to continually do that because they’re reaching a saturation in the States —  which is why they’re doubling down internationally,” added Nichols.

The good news for Netflix shareholders, of course, is that it’s connecting with international fans so far. More than half of Netflix’s 125 million subscribers come from outside the U.S.

“We’re seeing enormous mass adaptation on the international markets, and we’re seeing this because the shows are so good in each market they’re addressing,” Ross Gerber, president and CEO of Gerber Kawasaki Wealth and Investment Management, told TheWrap.

Many of Netflix’s best-known shows are produced internationally, with “Fauda” from Israel, “Dark” from Germany, and “Narcos” from Colombia to name a few. These shows, according to Gerber, serve a dual purpose in that they appeal to audiences both at home while keeping Netflix’s “global community” satiated as well.

The second season of “Fauda” debuted in May

In the quarters ahead, Netflix will rise and fall on its international gains. CEO Reed Hastings is aware of this and has pointed to India and its population of 1.3 billion in particular as a key market. Compared to its domestic saturation, there is still plenty of room for growth: Netflix’s 68 million international subscribers comes out to about 1 in every 106 people with an account outside the U.S.

To keep growing, Netflix is spending big. Ted Sarandos, the company’s chief content officer, has said the company is spending about $8 billion on content this year — while The Economist recently projected that the figure could balloon to $13 billion.

“Netflix’s business strategy is to bulk up quick, get big now, and keep spending on content once they reach a certain equilibrium,” said Gerber. “They’re kind of in a race to get ahead of everyone else — and they’ve proven they’re ahead of everyone else. I think they have a couple more years of heavy content spend to solidify their position internationally as the global player.”

It’ll be worth keeping an eye on how much debt Netflix is carrying to help fund its expansion. Netflix raised $1.9 billion in debt in April to fund content and “strategic transactions,” after it had reported $6.5 billion in debt obligations during its first-quarter earnings. But investors have shown a willingness to look at Netflix’s debt as a forgivable sin, as long as it continues to rack up subscribers.

This could soon become more difficult. Netflix’s growth has been aided by offering releases from major, internationally-proven studios like Disney. But the Mouse House and other Hollywood stalwarts have since realized they’ve been “subsidizing their own destruction,” as Harrington put it, by allowing Netflix to ride its content to the front of the international streaming race.

Disney will be pulling its shows from Netflix next year as it prepares to launch its own streaming service. Amazon isn’t on Netflix’s level yet, but always lingers as a formidable foe. And Apple is readying its content strike, armed with more than 1 billion devices worldwide it can offer its shows on (think of it like the U2 album that automatically downloaded to your iPhone, but with something you might actually enjoy).

Those are battles down the line for Netflix, though. And if its able to keep churning out top-notch programming outside the U.S., Gerber said he could see Netflix pushing to 200-250 million subscribers in the next five years. That push starts Monday afternoon when we’ll see how much new territory Netflix has gobbled up since April.

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Netflix Chief Communications Officer Jonathan Friedland Fired After Using the N-Word Twice: Here’s Reed Hastings’ Full Memo to Staff

Netflix’s chief communications officer Jonathan Friedland was fired on Friday for using the N-word on multiple occasions. Friedland was in charge of overseeing publicity for Netflix’s original series, films and specials.
Netflix CEO Reed Ha…

Netflix’s chief communications officer Jonathan Friedland was fired on Friday for using the N-word on multiple occasions. Friedland was in charge of overseeing publicity for Netflix’s original series, films and specials.

Netflix CEO Reed Hastings detailed the decision to let Friedland go in an internal memo, which you can read below.

All:

I’ve made a decision to let go of Jonathan Friedland.  Jonathan contributed greatly in many areas, but his descriptive use of the N-word on at least two occasions at work showed unacceptably low racial awareness and sensitivity, and is not in line with our values as a company.

The first incident was several months ago in a PR meeting about sensitive words.  Several people afterwards told him how inappropriate and hurtful his use of the N-word was, and Jonathan apologized to those that had been in the meeting.  We hoped this was an awful anomaly never to be repeated.  

Three months later he spoke to a meeting of our Black Employees @ Netflix group and did not bring it up, which was understood by many in the meeting to mean he didn’t care and didn’t accept accountability for his words.  

The second incident, which I only heard about this week, was a few days after the first incident; this time Jonathan said the N-word again to two of our Black employees in HR who were trying to help him deal with the original offense.  The second incident confirmed a deep lack of understanding, and convinced me to let Jonathan go now.

As I reflect on this, at this first incident, I should have done more to use it as a learning moment for everyone at Netflix about how painful and ugly that word is, and that it should not be used. I realize that my privilege has made me intellectualize or otherwise minimize race issues like this. I need to set a better example by learning and listening more so I can be the leader we need.

Depending on where you live or grew up in the world, understanding and sensitivities around the history and use of the N-word can vary. Debate on the use of the word is active around the world (example) as the use of it in popular media like music and film have created some confusion as to whether or not there is ever a time when the use of the N-word is acceptable. For non-Black people, the word should not be spoken as there is almost no context in which it is appropriate or constructive (even when singing a song or reading a script). There is not a way to neutralize the emotion and history behind the word in any context. The use of the phrase “N-word” was created as a euphemism, and the norm, with the intention of providing an acceptable replacement and moving people away from using the specific word. When a person violates this norm, it creates resentment, intense frustration, and great offense for many.  Our show Dear White People covers some of this ground.  

Going forward, we are going to find ways to educate and help our employees broadly understand the many difficult ways that race, nationality, gender identity and privilege play out in society and our organization. We seek to be great at inclusion, across many dimensions, and these incidents show we are uneven at best. We have already started to engage outside experts to help us learn faster.  

Jonathan has been a great contributor and he built a diverse global team creating awareness for Netflix, strengthening our reputation around the world, and helping make us into the successful company we are today. Many of us have worked closely with Jonathan for a long time, and have mixed emotions. Unfortunately, his lack of judgment in this area was too big for him to remain.  We care deeply about our employees feeling safe and supported at Netflix.  

Much of this information will be in the press shortly.  But any detail not in the press is confidential to employees.  

-Reed 

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