Netflix shares are up 8% today, which is a nice change of pace for the company which has been clobbered as of late.
The big news out of Netflix today is that its subscribers streamed 2 billion minutes worth of movies and shows last quarter.
Previously, CEO Reed Hastings had said streaming for Q4 was going to be over 1 billion. After clearing the low hurdle he set, investors are buying in.
Media analyst Rich Greenfield of BTIG took a look at the Netflix numbers and broke down what it means:
Netflix streaming usage is exploding and is far, far bigger than traditional media executives give it credit for. Just last month, Jeff Bewkes was quoted saying Netflix would be the 50th most watched network based on hours watched (implies 200 mm hours monthly or 600 mm per quarter), whereas Netflix is actually #15, with 666 mm hours monthly or 2 bn per quarter (our prior analysis estimated #25).
Another interesting takeaway from Greenfield. Netflix is the second most popular channel in the homes that have Netflix:
Second Most Watched Network in Netflix Subscriber Homes. With Netflix in only 21% of US multichannel households currently, we were curious how Netflix would stack up against other channels in homes that subscribe to Netflix streaming (the aforementioned 15th place was looking at Netflix against channels that reach 100 mm plus homes). If you take just 21% of the Nielsen monthly hours viewed stats we talked to above (to adjust full distribution networks down to homes with Netflix) the major broadcast networks monthly hours viewed range from 515 mm (FOX and NBC) to 600 mm for ABC and 700 mm for CBS. After the four major broadcast networks (with their affiliate groups), the next largest network would be Disney Channel at only 265 mm hours (ESPN would be 210 mm, TBS 845 mm, FX 105 mm, etc.). This implies that Netflix with 667 mm hours would be the #2 “network” in homes that subscribe to Netflix (second to only CBS) and would be the largest non-broadcast network. While Netflix households skew towards families that watch more than the average households (meaning our 21% adjustment factor reduces viewership in Netflix households too far), we believe the size of the gap between Netflix and Disney would ensure it was far more watched than any cable network, albeit, it might not surpass ABC, NBC and FOX; the most conservative interpretation would place it #5.
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