Netflix, Inc. (NASDAQ:NFLX) is scheduled to release its latest earnings report tonight after closing bell. Shares have been hovering right below their opening price for most of the day as investors wait to see what those results look like. Many analysts are positive on the company’s first quarter, although of course every company has its bears.
Surveys show Netflix remains popular with consumers
Time highlighted four key findings in a recent survey conducted by RBC Capital Markets. The survey covered more than a thousand Internet users, asking them about their entertainment habits. The survey found that 66% of those who currently subscribe to Netflix, Inc. (NASDAQ:NFLX) are extremely or very satisfied with the service—a new record and an increase from 62% last year.
In addition, Netflix, Inc. (NASDAQ:NFLX) passed YouTube and became the top video website. About 44% of those who responded said they watch movies or TV shows on it, which is an increase from 37% last year and just barely ahead of YouTube, which is at 43%.
Netflix customers not likely to leave
The survey also suggests that subscribers aren’t very likely to leave the service, as 69% of them said they weren’t at all likely to cancel within the next three months. That’s an increase from 66% last year and is the highest level in over two years.
Consumers seem especially happy with Netflix, Inc. (NASDAQ:NFLX)’s original content. In fact, RBC Capital analyst Mark Mahaney believes that the company’s original content is actually keeping customers from canceling. About 47% of those who responded to the survey indicated that the original content was extremely, quite or moderately important. That’s also an increase, as that number was 42% in November.
Investors anxious about updates
When Netflix, Inc. (NASDAQ:NFLX) releases its earnings and holds its conference call tonight, analysts and investors will be waiting to hear details about what the company has planned, in addition to just looking at the numbers. Mahaney believes that Netflix will be able to sustain its scale, growth and profitability and that this isn’t reflected into the company’s share price, which has risen dramatically over the last year or so.
Specifically, they will probably want to hear more about Netflix, Inc. (NASDAQ:NFLX)’s agreement with Comcast Corporation (NASDAQ:CMCSA) (NASDAQ:CMCSB), which has been seen as controversial. Even Netflix CEO Reed Hastings isn’t pleased about the deal, but there is evidence that Comcast customers are seeing better performance from their Netflix accounts, which should make them even more satisfied than before.