Netflix's (NFLX) Bright Attracts 11M Views, Per Nielsen Data

Netflix Inc. (NASDAQ:NFLX) production Bright has something to cheer about. Per Nielsen data, which was quoted by Bloomberg, the movie with a budget of $90 million attracted 11 million views between Dec 22 and 24.

Per Bloomberg’s calculation, “if those viewers had each paid the national average movie-ticket price of about $9 that would’ve been a $99 million debut at the box office, roughly what Universal Pictures — The Fate of the Furious — did in April.”

The figure is appreciable considering the scathing reviews received by the movie. According to IndieWire critic David Ehrlich, Bright is “so profoundly awful that Republicans will probably try to pass it into law over Christmas break.” Moreover, the movie received positive reviews from only 12% of top movie critics on Rotten Tomatoes.

Notably, Netflix doesn’t recognize Nielsen data. The company has actually disputed previous figures over Stranger Things 2 and The Crown. Per TechCrunch, the streaming service has stated that Nielsen only captures a fraction of the total viewership. Nielsen started tracking Netflix audience from October, 2017.

Netflix’s shares rose 3.5% to $192.71 at close on Dec 28, 2017. The stock has returned 55.7% year to date, substantially higher than the 14.2% rally of its industry.

What Lies Ahead in 2018

Netflix’s expanding catalogue of original contents will continue to be a growth driver in 2018. The addition of Death Note, Naked and To the Bone to its platform in the third quarter is worth mentioning. The company plans to release 80 original movies in 2018.

Netflix is planning to spend almost $8 billion on producing original content in 2018. This is a substantial jump from the $6 billion spent in 2017.

The company has also been ramping up efforts to boost regional programming. This is expected to expand Netflix’s international presence as the domestic market approaches saturation.

At the end of the previous quarter, Netflix's paid streaming members across the globe increased 24.9% year over year to approximately 104 million. The company has more than 109 million total subscribers, globally.

Zacks Rank & Key Picks

Currently, Netflix carries a Zacks Rank #3 (Hold).

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Long-term earnings growth for Lululemon, Michael Kors and Malibu are currently pegged at 12.4%, 7.5% and 15%, respectively.

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