The Other Number I'll Be Watching When Netflix Reports Earnings
Netflix (NASDAQ: NFLX) is due to report fourth-quarter earnings Tuesday afternoon, and investors will be watching closely to see how the streaming giant fared against both Disney+ and Apple+.
All eyes will be on the company's subscriber growth, especially in North America; it's most important market -- and the one where it's being most directly challenged by new entrants -- which will soon include AT&T's HBOMax and Comcast's Peacock. For the quarter, Netflix guided to just 600,000 domestic subscriber additions, down nearly 1 million from the quarter a year ago, which seems to be an admission of slowdown against the backdrop of the launch of streaming services by Disney and Apple.
While subscriber growth is certainly important, there's another data point I'll be keeping an eye on in Netflix's earnings report: average selling price (ASP).
Source Fool.com
