Netflix, Inc. (NASDAQ:NFLX) is expected to outperform HBO, the cable and satellite television network of Time Warner Inc (NYSE:TWX) in terms of the number of paid subscribers in the United States, according to a report from Bloomberg Businessweek.
The online video streaming company is scheduled to report its third quarter earnings results after the market close today. Analysts at Needham & Co. projected that Netflix, Inc. (NASDAQ:NFLX) could report as much as $30 million paid subscribers as of September 30, which will be higher than the 28.7 million paid subscribers of Time Warner Inc (NYSE:TWX) based on research released by SNL Kagan.
Based on data compiled by Bloomberg, eight analysts estimated that Netflix, Inc. (NASDAQ:NFLX) would report 31 million subscribers in the third quarter. During the previous quarter, the company posted 29.8 million subscribers. Its paid users were 28.6 million.
In terms of profits, analysts projected that Netflix, Inc. (NASDAQ:NFLX) will report $0.63 earnings per share excluding special items. Its revenue is expected at approximately $1.1 billion.
Reed Hastings’ objective for Netflix
Reed Hastings, CEO of Netflix, Inc. (NASDAQ:NFLX)’s primary objective is to transform the online video streaming company into a web-based television network. If the company indeed suspassed HBO’s level of paid subscribers in the United States, Hastings is making progress in achieving its goal.
Netflix, Inc. (NASDAQ:NFLX) introduced different original series such as the “House of Cards” starring Kevin Spacey. The original TV series won the best director for political drama at the 2013 Emmy Awards. The company is planning to bring its web-based service to cable TV-systems to boost its profitability.
Some cable providers, such as Cox Communications Inc, Suddenlink Communications, RCN Telecom Services, and Atlantic Broadband Finance LLC are working with Netflix, Inc. (NASDAQ:NFLX) to integrate its service to their programming.
Tony Wible, analysts at Janney Capital Markets opined, “Consumers are probably going to come to see Netflix as being more valuable than other networks’ monthly price.” He added, “There’s nothing to stop somebody who has a cable plan today from getting Netflix, but people will use it a lot more if it’s integrated into the set-top box.”
Bloomberg noted that Netflix, Inc. (NASDAQ:NFLX) is following the footsteps of HBO to strengthen the loyalty of its subscribers and increase its competitiveness against rivals such as Amazon.com, Inc. (NASDAQ:AMZN) and Hulu LLC by producing original TV shows and films.