Instant Reaction: Netflix Beats on Earnings, Disappoints on Cautious Forecast
Bloomberg Tech
Bloomberg
4.4 • 69 Ratings
🗓️ 20 January 2026
⏱️ 23 minutes
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Summary
Netflix delivered fourth-quarter results that largely beat Wall Street estimates but issued a cautious forecast for the months ahead, citing higher program spending and the cost of closing its deal with Warner Bros. Discovery Inc.
The streaming leader said Tuesday it plans to increase spending on films and TV shows by 10% in 2026 while forging ahead with plans to buy the studio and streaming business of Warner Bros., a deal that would unite two of the world’s largest entertainment companies. Netflix spent about $18 billion on programming last year, with subscribers growing almost 8% to top 325 million.
For instant reaction and analysis, Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec speak with:
- Bloomberg News Senior Editor and Entertainment Team Leader Chris Palmeri
- Eric Clark, Chief Investment Officer at Accuvest Global Advisors
- Bloomberg Intelligence Senior Media Analyst Geetha Ranganathan
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Transcript
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| 0:00.0 | I'm Carol Masser. And I'm Tim Steneveck, inviting you to join us for the Bloomberg Businessweek Daily Podcast. Now, every day we are bringing you reporting from the magazine that helps global leaders stay ahead. We've got insight on the people, the companies and trends that are shaping today's complex economy. That's right. Tim, we're all over global business, finance, tech news, all as it is happening in real time, and we've got complete coverage of the U.S. market close. |
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| 1:07.6 | Bloomberg Audio Studios. |
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| 1:17.9 | Instant reaction and analysis from our 3,000 journalists and analysts around the world. |
| 1:24.6 | Looking at Netflix shares, they're continuing to move lower. This after the company reported results |
| 1:30.5 | for the most recent quarter, concerns about the guidance and boosting spending. The company |
| 1:36.4 | saying even though they largely beat Wall Street estimates, they issued a cautious forecast |
| 1:41.2 | for the months ahead, setting higher program spending, and then of course, Carol, the cost of closing its deal with Warner Brothers Discovery. |
| 1:47.6 | Number of customers growing by almost 8% last year, topping 325 million subscribers. |
| 1:52.6 | Let's get to our team who certainly follows it, and of course our own Chris Palmerry, |
| 1:57.6 | who's been following this company, and the ins and outs of the pursuit |
| 2:00.9 | of Warner Brothers Discovery. Chris, they're out there on the West Coast. Chris, you know, you've |
| 2:07.0 | know this company, you followed it. Investors not too impressed. They're worried about, I guess, |
... |
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