iWorld
Netflix’s international streaming boosts rev in Q3, op income almost doubles
BENGALURU: Global internet entertainment company Netflix, Inc., (Netflix) reported 30.3 per cent year-over-year (y-o-y) increase in consolidated operating revenues for the quarter ended 30 September 2017 (Q3-17, current quarter) as compared to the consolidated revenue for the corresponding year-ago quarter. Consolidated revenue increased y-o-y to $2,984.86 million from $2,290.19 million.
Global streaming revenue in Q3-17 increased 33.2 per cent y-o-y to $2,874.65 million from $2,351.13 million driven by a 24 per cent increase in average paid memberships and 7 per cent growth in ASP. Netflix’s international streaming revenue increased 55.5 per cent y-o-y to $1,327.44 million from $853.48 million. Domestic streaming revenue increased 18.6 per cent y-o-y to $1,547.21 million from $1,304.33 million. Domestic DVD sales and rental business (DVD business), the company’s initial business model when it started, has been declining. DVD business revenue declined 16.7 per cent y-o-y to $110.21 million from $132.28 million.
Netflix’s operating income almost doubled y-o-y in the current quarter (up 96.8 per cent) to $208.63 million from $106.04 million. Net income more than doubled (up 2.51 times) y-o-y to $129.59 million from $51.52 million. Contribution profit from total streaming increased 51.6 per cent y-o-y to $616.26 million from $406.60 million. Domestic streaming contribution profit increased 16.6 per cent y-o-y to $553.91 million from $475.18 million. International streaming contribution profit was a positive $91.91 million as compared to a loss of $68.58 million in the corresponding year-ago quarter. DVD Business contribution profit declined 8.1 per cent y-o-y to $63.13 million from $68.70 million.
Netflix says that it added a Q3-record 5.3 million memberships globally (up 49 per cent year-over-year) as it continued to benefit from strong appetite for its original series and films, as well as the adoption of internet entertainment across the world.
The company says that it has been focused on growing global operating margin as a primary profitability metric since hitting its 2020 US contribution margin goal of 40 per cent this past Q1. This allows it to avoid near term optimization for specific domestic or international contribution margin targets which could impede its long term growth. For instance, Netflix anticipates its Q4-17 US contribution margin will be 34.4 per cent (a decline both year-on-year and sequentially) as it boosts its marketing investment against a growing content slate. It says it spends disproportionately in the US to generate media and influencer awareness for its programming which it believes, in turn, is an effective way to facilitate word of mouth globally. In its international segment, Netflix says that it is on track to generate positive contribution profit for the full year. As it moves into 2018, the company aims to achieve steady improvement in international profitability and a growing operating margin as its success in many large markets help fund investments throughout Asia and the rest of the world.
This quarter, Netflix says it has launched several new series such as the gritty drama Ozark and comedy Friends from College by Nick Stoller as well as Marvel’s The Defenders and returning seasons of fan favorites like Narcos and Fuller House. The company says that it is also making good strides on original films (as measured by member viewing relative to our investment) with the debut of Death Note (based on the popular Japanese IP), Naked (a romantic comedy featuring Marlon Wayans) and To the Bone (an intense drama starring Lily Collins).
Among other new offerings, Netflix says that it is releasing the second Netflix original series from David Fincher (Mindhunter), new seasons of its globally acclaimed franchises Stranger Things and The Crown, its first Italian and German original shows ( Suburra and Dark) and its most ambitious film yet, Bright, starring Will Smith and directed by David Ayer.
e-commerce
American Express to acquire AI startup Hyper to boost automation
Deal targets expense management as AI reshapes corporate spending tools.
MUMBAI: From receipts to robots, the expense sheet is getting a brain upgrade as American Express moves to bring artificial intelligence into the heart of corporate spending. The company has announced plans to acquire Hyper, a relatively young but fast-rising startup founded in 2022 that builds AI-powered agents capable of organising expenses, generating reports, verifying compliance with budgets and policies, and nudging users with timely reminders. The deal, expected to close in the second quarter of 2026, underscores a growing shift among financial institutions to automate traditionally manual, time-heavy workflows.
Hyper counts Sam Altman among its backers, adding a layer of Silicon Valley credibility to the acquisition. While financial details remain undisclosed, the strategic intent is clear: deepen automation capabilities and sharpen American Express’s position in the competitive corporate spending ecosystem.
The two companies are not strangers. They previously collaborated in 2024 on a co-branded credit card product, suggesting that the acquisition is less a cold buy and more an extension of an existing relationship. With this move, American Express is effectively bringing that capability in-house, aiming to embed AI directly into its commercial services stack.
Chief executive Stephen Squeri had already signalled the direction of travel in a recent shareholder letter, describing AI as a “structural shift” in how businesses operate. The Hyper acquisition appears to be a direct response to that shift, particularly in expense management, where processes such as approvals, compliance checks and reporting remain ripe for automation.
Alongside the acquisition, the company is also expanding its product suite. A recently launched business credit card offers cashback and benefits at an annual fee of $295, with another card expected later this year moves that complement its broader push into commercial services.
Taken together, the strategy points to a future where managing expenses may require fewer spreadsheets and more algorithms. For American Express, the bet is simple, if businesses are rethinking how work gets done, the tools that power that work need to evolve just as quickly.
