A couple sits in front of a television with the Netflix logo.
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of Netflix The second-quarter earnings report contained no bombshells, and that’s fine with the company and its investors.
In recent weeks, Paramount Global agreed to merge with Skydance Media. Discovery by Warner Bros is considering all options for its future and may lose NBA broadcast rights.
While the media and entertainment landscape surrounding Netflix is in a state of flux, the world’s largest streamer is fine with the status quo.
“If we execute well – better stories, easier discovery and more fans – while also establishing ourselves in newer areas like live, gaming and advertising, we believe we have much more room to grow,” Netflix said. quarterly shareholder letter. “Because when we delight people with our entertainment, Netflix can deliver higher engagement, revenue and profits than the competition. This in turn creates a more beloved and valuable entertainment company — for our members, creators and shareholders — which we can strengthen and grow.”
Netflix ranked the market for streaming, pay TV, movies, games and branded advertising as a $600 billion industry in terms of total annual sales, noting that the company accounts for about 6% of that revenue.
The streamer added more than 8 million subscribers in the quarter. It now has more than 277 million customers worldwide, making it by far the largest subscription streaming service in the world. Netflix’s market valuation as of Thursday’s market close is $277 billion.
Nielsen statistics show Netflix as the second most watched streaming service in the US, behind only YouTube. But instead of worrying about of YouTube competition, Netflix is content to focus on the other 80% of the TV market, the company reiterated.
“Looking ahead, we believe our biggest opportunity is to gain a larger share of the 80%+ of TV time (mostly linear and streaming) that neither Netflix nor YouTube currently has,” the company said.
While Warner and Disney announced a new intercompany bundle in May that will let consumers buy Max with Disney’s suite of streaming services for a discount, Netflix said it doesn’t feel the need to deal with the competition.
“We haven’t paired Netflix exclusively with other streamers like Disney+ or Max because Netflix already serves as a destination for entertainment thanks to the breadth and variety of our slate and superior product experience,” Netflix said. “This has led to industry penetration, engagement and retention, which limits the benefit for Netflix from engaging directly with others.”
Netflix’s focus remains building its advertising business and adding streaming subscribers due to the strength of its content.
It’s not the most dramatic narrative. It might not be a great Netflix series.
But as an investment, shareholders will gladly take it.
WATCH: Netflix takes a big hit in Q2 subscribers
