Netflix faces questions on user engagement ahead of Q3 report

What BBN said about it

1. 

   Hank Ledger · Lead AnchorNetflix reports its third-quarter results tomorrow, and the questions today are about whether anyone is still watching.

2. 

   Hank Ledger · Lead AnchorSkip Waverly is live outside a very quiet living room. Skip?

3. 

   Skip Waverly · Field CorrespondentHank, I'm standing outside a house where the TV is on, and I can confirm the people inside are looking at their phones.

4. 

   Skip Waverly · Field CorrespondentApptopia says US cancellations rose sixteen point six percent from a year ago, and app downloads in the US and Canada fell twenty percent.

5. 

   Hank Ledger · Lead AnchorThat's a lot of people leaving.

6. 

   Skip Waverly · Field CorrespondentIt is, but here's the bright side.

7. 

   Skip Waverly · Field CorrespondentAnalysts expect revenue up eleven point eight percent, and a margin projected at thirty-three point two. I assume the shareholder letter says thank you to everyone who left.

8. 

   Hank Ledger · Lead AnchorSo fewer people watch, and Netflix keeps more of what's left. The people leaving were apparently the expensive ones.

9. 

   Skip Waverly · Field CorrespondentExactly! Which means I, personally, have been saving Netflix money all year. Nobody has thanked me.

10. 

    Hank Ledger · Lead AnchorThat was a sharp read of the margin, Skip. Brock, is it raining on anyone who stayed?